IIROC announces settlement with Donald Dean Mackenzie

CALGARY, May 12 /CNW/ - A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has approved a Settlement Agreement, with sanctions, between IIROC staff and Donald Dean Mackenzie.

With this agreement, Mr. Mackenzie admits that he entered orders that he knew or ought reasonably to have known would create or could reasonably be expected to create an artificial bid price, contrary to the Universal Market Integrity Rules (UMIR).

Mr. Mackenzie has agreed to a penalty consisting of a $20,000 fine and a three-month prohibition from seeking re-registration approval with an IIROC-regulated firm. Mr. Mackenzie also agrees to pay $5,000 in costs to IIROC.

Specifically, Mr. Mackenzie admits to entering orders on the Toronto Stock Exchange for a particular stock without any intention that the orders would be executed, and which he knew or ought to have known would create an artificial bid price, contrary to UMIR Part 2.2(2)(b) and Policy 2.2. The high closing bids were artificial as they misrepresented the performance and actual demand for the stock. At the time, 87 of Mr. Mackenzie's clients held shares in that particular stock. Mr. Mackenzie also had personal and non-arm's length accounts in which he had a beneficial interest in that particular stock.

IIROC began the investigation into Mr. Mackenzie's conduct in March of 2009. The violations occurred when he was a Registered Representative with the Lethbridge branch of RBC Dominion Securities Inc., an IIROC-regulated firm. He is no longer a registrant with an IIROC-regulated firm.

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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

For further information:

Warren Funt
Vice President, Western Canada
604.331.4750
wfunt@iiroc.ca       
      Elsa Renzella
Director, Enforcement Litigation
416.943.5877
erenzella@iiroc.ca

 


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