TORONTO, May 29 /CNW/ - On Friday, May 22, 2009, a Hearing Panel of the
Investment Industry Regulatory Organization of Canada (IIROC) accepted a
Settlement Agreement between IIROC Staff and BMO Nesbitt Burns Inc. (the
"Respondent"). Pursuant to the Settlement Agreement, the Respondent admitted
(a) In September 2007, BMO Nesbitt Burns Inc. failed to maintain risk
adjusted capital at a level greater than zero as calculated in
accordance with Form 1 and was RAC deficient in the sum of $207
million and thereby contravened IIROC Rule 17.1.
Pursuant to the Settlement Agreement, the Hearing Panel imposed the
following penalty against the Respondent:
(a) A fine in the amount of $50,000.
The Hearing Panel also required the Respondent to pay costs in the amount
IIROC formally initiated the investigation into the Respondent's conduct
on November 3, 2008.
The Hearing Panel issued its Reasons and Decision orally on May 22, 2009.
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
For further information:
For further information: Alex Popovic, Vice-President, Enforcement,
(416) 943-6904, firstname.lastname@example.org; Jeff Kehoe, Director, Enforcement, (416)