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.
For further information: For further information: Carmen Crépin, Vice President, Québec, (514) 878-2854, [email protected]; Jeff Kehoe, Acting Vice President, Enforcement, (416) 943-6996, [email protected]
Share this article