IN THE MATTER OF Donald Philip Stevenson - Settlement



    MONTREAL, Oct. 10 /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 Thursday, October 30, 2008 at 5 Place Ville-Marie, suite
1550, Montréal, Québec, at 9:00 a.m. or as soon thereafter as the hearing can
be held, to consider whether, pursuant to Rule 20.36 of the IIROC, the Hearing
Panel should accept a Settlement Agreement entered into between Staff of IIROC
and Donald Philip Stevenson (the "Respondent").

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

    
    (1) During the period of May 2003 to August 2005, the Respondent failed
        to properly exercise his gatekeeper duty in his supervision of the
        opening, by a RR, of accounts for twenty (20) offshore corporations
        with the same designated beneficiary, without properly inquiring and
        in approving them while the required information was incomplete,
        inaccurate or missing on the forms, contrary to Regulation 1300.2 and
        Policy no. 2 of the Investment Dealers Association of Canada (IDA),
        thereby failing to ensure that the opening of these accounts was
        within the grounds of good business practices, contrary to By-law
        29.1 of the IDA;

    (2) During the period from 2001 to 2006, the Respondent failed to keep
        proper tracking and records of his branch supervisory daily and
        monthly reviews and of his inquiries and their follow-up, as required
        by Policy no. 2 of the IDA;

    (3) On or around October 28, 2005, the Respondent placed himself in
        conflict of interest in obtaining a personal loan from one of his
        subordinates, thereby placing his personal interest over his
        supervisory duty and compromising his independence in the exercise of
        the responsibilities he owed in this regard, contrary to By-law 29.1
        to the IDA; and

    (4) On or before October 28, 2005, the Respondent failed to obtain the
        prior approval of his employer before entering into a personal
        financial business with an employee under his direct supervisory
        authority and, until this was discovered by his compliance department
        in January 2006, and especially in November 2005, when he was made
        aware that this employee was operating an undisclosed business of
        loans, he never disclosed having himself become a debtor of this
        employee by obtaining from him a loan for an amount up to $200,000,
        contrary to By-law 29.1 of the IDA.
    

    IDA formally initiated the investigation into the Respondent's conduct on
February 7, 2007. The alleged violations occurred while the Respondent was a
Co-Branch Manager with the Montréal Branch of Research Capital Corporation. He
was also approved as Sales Manager, Senior Vice-President, Director and
Registered Representative. The Respondent is still employed by Research
Capital Corporation.
    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.




For further information:

For further information: Carmen Crépin, Vice President, Québec, (514)
878-1625 or ccrepin@iiroc.ca; Jeff Kehoe, Director, Enforcement, (416)
943-6996 or jkehoe@iiroc.ca


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