VANCOUVER, May 25 /CNW/ - A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has accepted settlement agreements, which include sanctions, between IIROC staff and both Francesco Mauro and Scott Fraser Harding.
Mr. Harding has admitted he failed in his role as gatekeeper in the markets when he entered and executed stock trades which he ought to have known could be expected to create an artificial price in the stock's share price. As part of his settlement agreement, Mr. Harding agreed to pay a fine of $40,000 and costs of $10,000.
Mr. Mauro has admitted he failed in his role as Mr. Harding's supervisor to ensure Mr. Harding complied with IIROC's Universal Market Integrity Rules (UMIR). As part of his settlement agreement, Mr. Mauro agreed to pay a fine of $25,000 and costs of $5,000.
The Hearing Panel issued its decision on May 3, 2010. The specific violations addressed in the agreements are as follows:
- Mr. Harding entered orders and executed trades on behalf of a client
for TSX-Venture-listed Evergreen Gaming Corporation. In doing so, he
ought to have known the activity could reasonably be expected to
create an artificial price for the security, contrary to UMIR 2.2(2)
(b) and UMIR Policy 2.2 (e), for which he is liable under UMIR 10.4
- Mr. Mauro, at the time a branch manager and officer at the same
institution, did not meet the standard required of him in his role as
a supervisor to ensure that Mr. Harding complied with UMIR and its
policies, contrary to UMIR 7.1 (4) and Policy 7.1.
IIROC began the investigation into Messrs. Mauro and Harding's conduct on November 13, 2008. The violations occurred when they were Registered Representatives at the 100 Park Royal, West Vancouver Branch of CIBC World Markets Inc., an IIROC-regulated firm. Both individuals are currently registered in the same capacity at the 545 Clyde Avenue, West Vancouver Branch of Wellington West Capital Inc., 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.
SOURCE Investment Industry Regulatory Organization of Canada (IIROC) - General News
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