MONTRÉAL, Feb. 15 /CNW/ - A Hearing Panel of the Investment Industry
Regulatory Organization of Canada (IIROC) has accepted a Settlement
Agreement, with sanctions, between IIROC staff and Richard Roy.
In the agreement, Mr. Roy admits that he failed in his know-your-client obligations and
that he inappropriately followed trading instructions from an
unauthorized third party.
Mr. Roy has agreed to a $20,000 fine, to pay $2,500 in costs and to a
suspension from approval in any capacity for five years. If he is
re-registered with an IIROC-regulated firm after the suspension, he has
agreed to a permanent prohibition from acting in a management or
supervisory capacity and to work under close supervision for six
Specifically, Mr. Roy admits that he:
Failed to use due diligence to ensure he learned all the essential facts
relative to his clients, contrary to IIROC Rule 1300.1 (a) and 1300.1 (b); and
Accepted and followed instructions from an unauthorized third party,
contrary to IIROC Rule 200.1(i)(3). This rule requires, in part, that before trading instructions on an
account are accepted from someone other than the customer, a written
trading authorization is required.
The violations occurred from January 2005 to June 2007 while Mr. Roy was
a Registered Representative at the Montréal branch of Industrial
Alliance Securities Inc., an IIROC-regulated firm. IIROC began the
formal investigation into Mr. Roy's conduct on September 26, 2007. Mr.
Roy is no longer a registrant with an IIROC-regulated 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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