VANCOUVER, Dec. 14 /CNW/ - On November 10, 2009, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement between IIROC Staff and Mark Andrew Reynolds and Lawrence Bradley Chang (the Respondents). Pursuant to the Settlement Agreement:
(a) Reynolds admitted that he acted contrary to Dealer Member Rule 29.1
by accepting orders to buy and sell shares of Aberdene in client
accounts without reasonably informing himself of the essential facts
relative to his clients' orders and without assuring himself the
transactions were not being effected for improper purposes, in
circumstances which necessitated such inquiries; and
(b) Chang admitted that he acted contrary to Dealer Member Rules 1300.1
(a), (o), and (p) by accepting orders to buy and sell shares of
Aberdene in client accounts without making reasonable or diligent
inquiries that were reasonably necessary to inform himself of the
essential facts relative to his clients and their orders and to
assure himself that the transactions were suitable for his clients
in the circumstances which necessitated such inquiries.
Pursuant to the Settlement Agreement, the Hearing Panel imposed the following penalties against the Respondents:
(a) Reynolds will pay a fine of $40,000;
(b) Chang will pay a fine of $30,000; and
(c) Reynolds is suspended from approval in any registered capacity with
IIROC for a period of 6 months from the date of his execution of the
The Hearing Panel also required the Respondents to pay costs in the amount of $2,000 each for a total of $4,000.
IIROC formally initiated the investigation into the Respondents' conduct on January 27, 2005. The alleged violations occurred when Mark Andrew Reynolds was a Registered Representative with the No.564-1055 Dunsmuir Street Branch of Research Capital Corporation and Lawrence Bradley Chang was a Registered Representative with the No.1077-777 Dunsmuir Street Branch of Wolverton Securities Ltd. Mark Andrew Reynolds is no longer registered in any capacity with an IIROC Dealer Member. Lawrence Bradley Chang is currently a Registered Representative at the No.2200-609 Granville Street Branch of Canaccord Capital Corporation, an IIROC-regulated firm.
The Hearing Panel issued its Reasons and Decision on November 23, 2009. 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
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