TORONTO, Jan. 5, 2016 /CNW/ - On December 3, 2015, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff, Global Maxfin Capital Inc. and Issam El-Bouji.
Global Maxfin Capital Inc. admitted that it failed to maintain Risk Adjusted Capital greater than zero between June 2012 and September 25, 2012. Issam El-Bouji admitted that he failed, as UDP (Ultimate Designated Person), to ensure compliance with IIROC's Dealer Member Rules in this regard.
Specifically, Global Maxfin Capital Inc. admitted to the following violation:
(a) Between June 30, 2012 and September 25, 2012, Global Maxfin Capital Inc. failed to maintain Risk Adjusted Capital at a level greater than zero as calculated in accordance with IIROC Form 1 and was capital deficient in sums ranging from $253,841 to $2,205,698 and thereby contravened IIROC Dealer Member Rule 17.1.
Specifically, Mr. El-Bouji admitted to the following violation:
(b) Between June 30, 2012 and September 25, 2012, Mr. El-Bouji failed to ensure that he supervised the activities of the Dealer Member that are directed towards ensuring compliance with IIROC's Dealer Member Rules and promote compliance by the Dealer Member and individuals acting on its behalf and thereby contravened IIROC Dealer Member Rule 38.5.
Pursuant to the Settlement Agreement, Global Maxfin Capital Inc. agreed to the following penalty:
(a) A fine in the sum of $40,000.
Pursuant to the Settlement Agreement, Mr. El-Bouji agreed to the following penalty:
(a) A fine in the sum of $15,000.
Global Maxfin Capital Inc. and Mr. El-Bouji also agreed to pay costs in the amount of $5,000.
The Settlement Agreement is available at
The Hearing Panel's decision will be made available at www.iiroc.ca.
Documents related to ongoing IIROC enforcement proceedings – including Reasons and Decisions of Hearing Panels – are posted on the IIROC website as they become available. Click here to search and access all IIROC enforcement documents.
IIROC formally initiated the investigation into Global Maxfin Capital Inc.'s and Mr. El-Bouji's conduct in October 2013. The conduct occurred at Global Maxfin Capital Inc. and while Mr. El-Bouji was the Ultimate Designated Person with the Toronto branch of Global Maxfin Capital Inc., an IIROC-regulated firm. Mr. El-Bouji is no longer registered as a UDP in the securities industry.
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IIROC is the national self-regulatory organization which oversees all investment dealers and their trading activity in Canada's debt and equity markets. IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while maintaining efficient and competitive capital markets. IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of dealer firms and their registered employees and through setting and enforcing market integrity rules regarding trading activity on Canadian equity marketplaces.
IIROC investigates possible misconduct by its member firms and/or individual registrants. It can bring disciplinary proceedings which may result in penalties including fines, suspensions, permanent bars, expulsion from membership, or termination of rights and privileges for individuals and firms.
All information about disciplinary proceedings relating to current and former member firms is available in the Enforcement section of the IIROC website. Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by IIROC-regulated firms is available free of charge through the IIROC AdvisorReport service. Information on how to make investment dealer, advisor or marketplace-related complaints is available by calling 1 877 442-4322.
SOURCE Investment Industry Regulatory Organization of Canada (IIROC) - General News
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