TORONTO, May 25 /CNW/ - A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has accepted a settlement agreement between IIROC staff and IPC Securities Corporation. IPC has admitted that its inadequate policies and procedures made it unable to effectively supervise retail clients who purchased securities under prospectus exemptions.
As part of the May 13, 2010 settlement agreement, IPC agreed to pay a fine of $65,000 and pay $10,000 toward staff costs. The Reasons and Decision document will be made public after it is issued by the Panel at a later date.
In the agreement, IPC admitted it failed to establish and maintain adequate policies and procedures to ensure clients qualified as accredited investors (in accordance with provisions of the Ontario Securities Act) before assisting them in the purchase of exempt securities. These actions are contrary to By-Law 29.27 of the Investment Dealers Association of Canada (now IIROC), Regulation 1300.2 and Policy 2. As a result of the investigation by IIROC staff, IPC has established more efficient policies and procedures to remedy these failings, according to the agreement.
The violations occurred between 2005 and 2008 and the IDA (now IIROC) began its investigation into IPC's conduct on May 20, 2008. Toronto-based IPC was regulated by the IDA at the time and is regulated by IIROC today.
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.
SOURCE Investment Industry Regulatory Organization of Canada (IIROC) - General News
For further information: For further information: Jeff Kehoe, Acting Vice President, Enforcement, (416) 943-6996, firstname.lastname@example.org