CALGARY, Jan. 10, 2012 /CNW/ - A Hearing Panel of the Investment
Industry Regulatory Organization of Canada (IIROC) found on September
26, 2011that Kenneth Gareau recorded inaccurate "know your client"
information on client account forms, made unsuitable recommendations
and made a transaction against the expressed wishes of a client.
The Decision and Reasons on Liability dated September 26, 2011 can be
In a penalty decision dated January 2, 2012, the panel imposed the
following penalties on Mr. Gareau:
(a) An order that he may not seek registration for a period of one year
from the date of the decision on penalty;
(b) A fine of $100,000;
(c) Disgorgement of commissions in the amount of $47,383;
(d) Before seeking re-registration, he must successfully re-take the
Conduct and Practices Course;
(e) If he is re-registered, he must be subject to strict supervision for
one year followed by a further six months of close supervision; and
(f) Payment of costs of $20,000.
The Decision and Reasons on Penalty can be found at
IIROC formally initiated the investigation into Mr. Gareau's conduct in
March 2009. The violations occurred when he was a Registered
Representative with the Regina, Saskatchewan sub-branch of Dundee
Securities Corporation, an IIROC-regulated firm. Until the release of
the Decision and Reasons on Penalty, Mr. Gareau was registered at the
same firm, now known as DWM Securities Inc., in Regina.
* * *
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.
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, permanent bars,
expulsion from membership, or termination of rights and privileges 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.
SOURCE Investment Industry Regulatory Organization of Canada (IIROC) - General News
For further information:
| Enforcement Contact: |
Vice President, Western Canada
| Media Contact: |
Director, Public Affairs