TORONTO, Feb. 10, 2014 /CNW/ - On January 27, 2014, a Hearing Panel of
the Investment Industry Regulatory Organization of Canada (IIROC)
accepted a Settlement Agreement, with sanctions, between IIROC staff
and Adriano Beghin.
Mr. Beghin admitted that he failed to learn and remain informed of the
unwillingness of certain clients to suffer a capital loss in their
investments. As a result, he recommended the purchase and holding of
certain securities, which carried certain risks, which ultimately
resulted in capital losses by these clients.
Specifically, Mr. Beghin admitted to the following violation:
(a) Between September 2008 and November 2010, he failed to use due
diligence to learn and remain informed of the essential facts relative
to certain of his clients, contrary to IIROC Dealer Member Rule
Pursuant to the Settlement Agreement, Mr. Beghin agreed to the following
(a) He will be subject to a reprimand;
(b) He will continue under the current supervision terms imposed by
TD Waterhouse Canada Inc. ("TDW") until the date the Settlement
Agreement is accepted by the Hearing Panel; and
(c) A fine of $10,000.
Mr. Beghin also agreed to pay costs in the amount of $2,500.
Mr. Beghin had been under voluntary supervision at TDW since October
2011, and had successfully re-written the Conduct and Practices
Handbook course prior to the Settlement Hearing.
The Settlement Agreement is available at:
http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=C3387C17C9C447A5A55E4576DB9B5359&Language=en and 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 Mr. Beghin's conduct in
August 2011. The conduct occurred when he was a Registered
Representative with the North York, Ontario branch of TDW, an
IIROC-regulated firm. Mr. Beghin is currently a Registered
Representative in that same branch.
* * *
IIROC is the national self-regulatory organization which oversees all
investment dealers and trading activity on debt and equity marketplaces
in Canada. Created in 2008 through the consolidation of the Investment
Dealers Association of Canada and Market Regulation Services Inc.,
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
For further information:
Vice President, Enforcement
Senior Media and Public Affairs Specialist