IN THE MATTER OF Canaccord Financial Ltd. - Settlement

VANCOUVER, Dec. 18 /CNW/ - Notice is hereby given that a hearing will be held before a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC), on Monday, December 21, 2009 at Reportex Agencies Ltd., located at 925 West Georgia Street, Suite 1010, Vancouver, BC at 10 a.m. or as soon thereafter as the hearing can be held, to consider whether, pursuant to section 20.36 of IIROC Dealer Member Rule, the Hearing Panel should accept a Settlement Agreement entered into between Staff of IIROC and Canaccord Financial Ltd. (the "Respondent", formerly Canaccord Capital Corporation).

The subject matter of the proposed Settlement Agreement concerns allegations that:

    
        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)).
    

IIROC formally initiated the investigation into the Respondent's conduct on May 7, 2008. The alleged violation occurred when the Respondent was a member firm of the Investment Dealers Association (IDA). The Respondent is currently an IIROC dealer member.

The hearing is not open to the public unless and until the Settlement Agreement has been accepted by the Hearing Panel. If the Hearing Panel accepts the Settlement Agreement, the Hearing Panel's decision and reasons will be made available to the public.

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: For further information: Alex Popovic, Vice President, Enforcement, (416) 943-6904, apopovic@iiroc.ca; Jeff Kehoe, Director, Enforcement Litigation, (416) 943-6996, jkehoe@iiroc.ca


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