CALGARY, Feb. 14, 2013 /CNW/ - Following a disciplinary hearing held
from October 1-4, 2012 in Edmonton, Alberta, a Hearing Panel of the
Investment Industry Regulatory Organization of Canada (IIROC), found
that Charles B. Floyd made unsuitable recommendations and discretionary
purchases in a client's account and that James Gordon McDonald failed
to supervise the account.
The panel's decision dated January 22, 2013 is available at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=E1746D66C38F419E9F5F7810E8AF4C13&Language=en.
Specifically, the panel found that Mr. Floyd and Mr. McDonald committed
the following violations:
Between April and December 2008, Mr. Floyd acted contrary to IIROC
Dealer Member Rule 1300.1 (q) by failing to ensure recommendations he
made for a client were suitable for the client.
Between September and November 2008, Mr. Floyd acted contrary to IIROC
Dealer Member Rule 1300.4 by using discretion with respect to purchases
in a client account.
Between April and December 2008, Mr. McDonald acted contrary to IIROC
Dealer Member Rule 1300.1 (p) and IIROC Dealer Member Rule 2500 by
failing to adequately supervise a client account to ensure that
holdings in the account were suitable for the client.
A separate hearing will be held to determine the penalty to be imposed
on Mr. Floyd and Mr. McDonald. The date 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. Floyd's conduct in
May 2009 and into Mr. McDonald's conduct in March 2009. The alleged
violations occurred when they were Registered Representatives with the
Edmonton branch of Union Securities Ltd., an IIROC-regulated firm. Mr.
Floyd and Mr. McDonald are both Registered Representatives at Wolverton
Securities Ltd., an IIROC-regulated firm.
* * *
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 and permanent bans or
terminations 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, Western Canada
Public Affairs Specialist