VANCOUVER, Sept. 20, 2011 /CNW/ - A Hearing Panel of the Investment
Industry Regulatory Organization of Canada (IIROC) will meet to set a
date for a disciplinary hearing for Carol Ann Zosiak and John Frederick
The proposed disciplinary hearing concerns allegations that Ms. Zosiak opened two corporate accounts without determining their
beneficial owner, and facilitated trades in those accounts without
properly questioning the legitimacy of the transactions. It is also
alleged that Mr. Brighten, as the firm's Chief Compliance Officer,
failed to properly supervise Ms. Zosiak in this matter.
Set Date Hearing:
October 5, 2011 at 10:00 a.m.
1055 West Georgia Street, Suite 2800
The set date hearing is open to the public, unless the panel orders
otherwise. The date for the hearing will be made available at www.iiroc.ca.
Specifically, it is alleged that Ms. Zosiak:
Failed to determine the beneficial owner of two new corporate accounts,
contrary to IDA Regulation 1300.1(a) (now IIROC Rule 1300.1(a)); and
Failed to perform her role as gatekeeper to the capital markets by
facilitating transactions without making diligent inquiries about their
legitimacy, even though the circumstances called for such inquiries,
contrary to IDA By-law 29.1 (now IIROC Rule 29.1) and IDA Regulation 1300.1(a) (now IIROC Rule 1300.1(a)).
It is alleged that, as the firm's Chief Compliance Officer, Mr.
Failed to adequately supervise Ms. Zosiak regarding the opening and
trading in two client accounts, and ensuring that diligent inquiries
were made in circumstances that called for such inquiries, contrary to
IDA By-laws 29.27 and 38 (now IIROC Rule 38), Regulation 1300.2(a) (now IIROC Rule 1300.2(a)) and Policy 2 (now IIROC Rule 2500).
The alleged violations occurred between October 2005 and June 2006, when
Ms. Zosiak was a Registered Representative and Mr. Brighten was the
Chief Compliance Officer at the Burrard Street, Vancouver branch of
Global Securities Corporation, an IIROC-regulated firm. IIROC began its
investigation into Ms. Zosiak's conduct in July 2009 and into Mr.
Brighten's conduct in November 2010. Ms. Zosiak and Mr. Brighten
continue to be registered at this branch of this firm.
* * *
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.
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
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