IN THE MATTER OF TD Waterhouse Canada Inc. - Settlement



    TORONTO, July 31 /CNW/ - On July 31, 2008, a Hearing Panel of the
Investment Industry Regulatory Organization of Canada (IIROC) accepted a
Settlement Agreement between IIROC Staff and TD Waterhouse Canada Inc. (the
"Respondent"). Pursuant to the Settlement Agreement, the Respondent admitted
that:

    
    (a) From 2001 to early 2005, the Respondent facilitated purchases of
        Olympus funds in client accounts without ensuring that clients were
        in fact accredited investors pursuant to the relevant prospectus
        exemption rules, contrary to IDA Regulations 1300.1(a), 1300.2 and
        Policy 2; and

    (b) From 2001 to the fall of 2004, the Respondent failed to establish and
        maintain alternative investment review or approval procedures and
        from 2001 to 2005 failed to establish and maintain sufficient
        training and guidance to its approved persons, to ensure that the
        purchase of hedge funds was appropriate for its clients contrary to
        IDA By-law 29.27, Regulations 1300.1(q), 1300.2, and Policy 2.

    Pursuant to the Settlement Agreement, the Hearing Panel imposed the
    following penalty against the Respondent:

    (a) A fine in the amount of $2,000,000;

    and required the Respondent to pay costs in the amount of $50,000.
    

    The Investment Dealers Association of Canada (IDA) formally initiated the
investigation into the Respondent's conduct on or about April 2006. The
violations occurred when the Respondent was a member of the IDA. The
Respondent is currently a Dealer Member of IIROC.
    The Hearing Panel will issue its Reasons and Decision in due course. The
Settlement Agreement is available at
http://www.iiroc.ca/English/Pages/home.aspx.

    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: Paul Bourque, Senior Vice President,
Enforcement, Policy & Registration, (416) 865-3038 or pbourque@iiroc.ca; Alex
Popovic, Vice President, Enforcement, (416) 943-6904 or apopovic@iiroc.ca


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