IN THE MATTER OF Mario Bouchard - Settlement

MONTRÉAL, April 8 /CNW/ - On March 30, 2010, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement between IIROC Staff and Mario Bouchard (the Respondent). Pursuant to the Settlement Agreement, the Respondent admitted that:

    
    (a)  On or about July 6, 2004, the Respondent failed in his duty to
         protect the public in supervising the transactions effected in the
         account of client "A" by a representative under his supervision,
         with regard to deposits of share certificates, notably by an insider
         who was also a client of the Respondent, thereby failing to ensure
         that these transactions were within the bounds of good business
         practice, when he knew or should have known that the transactions
         could be an indicator of an activity or behaviour that was
         suspicious or contrary to the public interest, contrary to
         Regulation 1300, Policy No.2 and By-Law 29 of the Association;

    (b)  From July 2004 to October 2004, the Respondent failed in his duty to
         protect the public in supervising the transactions effected in the
         account of client "A" by a representative under his supervision,
         with regard to the routine execution of sell orders following
         deposits of share certificates, notably by an insider who was also a
         client of the Respondent, and to requests for the issuance of
         cheques to third parties, thereby failing to ensure that these
         transactions were within the bounds of good business practice, when
         he knew or should have known that the transactions could be an
         indicator of an activity or behaviour that was suspicious or
         contrary to the public interest, contrary to Regulation 1300, Policy
         No. 2 and By-Law 29 of the Association;

    (c)  From July 2004 to October 2004, the Respondent failed to track and
         keep a proper record of his daily supervision reviews and of his
         inquiries and their follow-up, with regard to the transactions
         executed in the account of client "A", as required by Policy No. 2
         and By-law 29 of the Association; and

    (d)  On or about September 29, 2006, the Respondent engaged in business
         conduct unbecoming or detrimental to the public interest, in that he
         failed to respect Standard C of the Conduct and Practices Handbook,
         which relates to professionalism, when he covered the losses of
         client "I" with his own funds, without the knowledge of the firm,
         contrary to By-law 29.1 of the Association.
    

Pursuant to the Settlement Agreement, the Hearing Panel imposed the following penalties on the Respondent:

    
    (a)  aggregate fine of $30,000;

    (b)  prohibition of approval from IIROC, in any capacity, for a period of
         six (6) months from the effective date of the Settlement Agreement;

    (c)  as a prior condition to re-approval, the Respondent must pass the
         Conduct and Practices Handbook examination;

    (d)  permanent bar from approval as branch manager, assistant or
         co-branch manager, or in any other supervisory capacity whatsoever;

    (e)  the requirement of a continuous period of close supervision for
         twelve (12) months from the effective date of the Settlement
         Agreement as a condition of re-approval in any capacity, with the
         production of supervision reports signed by the branch manager and
         countersigned by the chief compliance officer, to be submitted
         monthly to the Manager of the IIROC Registration Department,
         Montréal.
    

The Hearing Panel also ordered the Respondent to pay costs in the amount of $3,500.

IIROC formally initiated the investigations into the Respondent's conduct on January 19, 2006 and on September 14, 2009. The violations are alleged to have occurred while the Respondent was Branch Manager, or a Registered Representative Options (Retail) at the Rouyn-Noranda branch of National Bank Financial Inc. Mr. Bouchard is no longer a registrant with an IIROC-regulated firm.

The Hearing Panel issued its Decision and Reasons on March 30, 2010. The Settlement Agreement and the Hearing Panel's Decision and Reasons are 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 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: Carmen Crépin, Vice President, Québec, (514) 878-2854, ccrepin@iiroc.ca; Jeff Kehoe, Acting Vice President, Enforcement, (416) 943-6996, jkehoe@iiroc.ca


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