CALGARY, Nov. 27, 2012 /CNW/ - On November 9, 2012, a Hearing Panel of
the Investment Industry Regulatory Organization of Canada (IIROC)
accepted a Settlement Agreement, with sanctions, between IIROC staff
and Richard Allan MacDonald.
Mr. MacDonald admitted that he failed to effectively exercise his
supervisory responsibilities with respect to the suitability of
holdings in the accounts of six clients.
Specifically, Mr. MacDonald admitted that from June, 2004 to March,
2009, while a Branch Manager at DWM Securities Inc., he failed to take
the supervisory steps that were reasonably required with respect to the
suitability of holdings in the accounts of six clients, contrary to
IIROC Dealer Member Rules 38.4(a) and 2500 [IDA Regulation 1300.2 and
Policy No. 2 prior to June 1, 2008].
Pursuant to the Settlement Agreement, Mr. MacDonald agreed to the
A $40,000 fine to IIROC; and
Mr. MacDonald shall be prohibited from acting in a supervisory capacity
for five years.
Mr. MacDonald also agreed to pay costs in the amount of $3,000.00.
The Settlement Agreement is available at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=1095ADF84E1E4598B3DE31E6CD91D764&Language=en and 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. MacDonald's conduct
in August 2010. The conduct occurred when he was a Branch Manager in
Calgary with DWM Securities Inc., an IIROC-regulated firm. Mr.
MacDonald is no longer a registrant with an IIROC-regulated firm.
* * *
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:
Vice President, Western Canada
Director, Public Affairs