TORONTO, Dec. 8, 2016 /CNW/ - On November 16, 2016, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and Paul Wayne Lynch.
Mr. Lynch admitted that he exercised time and price discretion in client accounts and accepted trading instructions without written authorization.
Specifically, Mr. Lynch admitted to the following violations:
- Between 2010 and 2012, Mr. Lynch made discretionary trades in the accounts of three clients, without the accounts having been approved and accepted as discretionary accounts, contrary to IIROC Dealer Member Rule 1300.4; and
- Between 2010 and 2012, Mr. Lynch failed to maintain required minimum records in respect of the account of one client, in that he accepted trading instructions from the client's father, without obtaining written authorization from the client to do so, contrary to IIROC Dealer Member Rule 200.1(i)(3) (now IIROC Dealer Member Rule 200.2(m)(iii)).
Pursuant to the Settlement Agreement, Mr. Lynch agreed to the following penalties:
- A global fine of $17,500; and
- A requirement to re-write the Conduct and Practices Handbook course within six months of the date of the acceptance of the Settlement Agreement.
Mr. Lynch also agreed to pay costs in the amount of $2,000.
The Settlement Agreement is available at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=C31E715765A548269070A039C1686F12&Language=en
The Hearing Panel's decision will be made available at www.iiroc.ca.
Documents related to ongoing IIROC enforcement proceedings – including Reasons and Decisions of Hearing Panels – are posted on the IIROC website as they become available. Click here to search and access all IIROC enforcement documents.
IIROC formally initiated the investigation into Mr. Lynch's conduct in October 2014. The conduct occurred while he was a Registered Representative with the Ottawa, Ontario branch of CIBC World Markets Inc., an IIROC-regulated firm. Mr. Lynch is still employed in a registered capacity with the same firm.
IIROC is the national self-regulatory organization which oversees all investment dealers and their trading activity in Canada's debt and equity markets. IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while supporting healthy Canadian 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
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