IN THE MATTER OF Canaccord Financial Ltd. - Settlement
In or about 2006 and 2007, the Respondent did not take steps to adequately ensure its sales staff understood the complexities of the third-party asset-backed commercial paper (ABCP) product it offered for sale to retail clients and the consequent risks (including systemic risks and counterparty risks) related to the product and, in not taking these adequate steps, did not ensure that the purchase of third-party ABCP was appropriately understood by its clients, contrary to Investment Dealers Association Regulation 1300.1(a) (now IIROC Dealer Member Rule 1300.1(a)).
Pursuant to the Settlement Agreement, the Hearing Panel imposed the following penalty against the Respondent:
(a) a fine in the amount of $3,100,000 (inclusive of costs); and (b) an order to retain an independent consultant to carry out a compliance review relating to due diligence practices and procedures relating to fixed income securities.
IIROC formally initiated the investigation into the Respondent's conduct on
The Hearing Panel will issue its Reasons and Decision on a later date. The approved Settlement Agreement is available at: www.iiroc.ca.
IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in
For further information: For further information: Alex Popovic, Vice President, Enforcement, (416) 943-6904, [email protected]; Jeff Kehoe, Director, Enforcement Litigation, (416) 943-6996, [email protected]
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