TORONTO, Dec. 9 /CNW/ - A hearing has been scheduled before a Hearing
Panel of the Investment Industry Regulatory Organization of Canada
(IIROC) to set a date for a disciplinary hearing for Shaun Gerard
The hearing concerns allegations that Mr. McErlean used false statements to mislead clients about the
value of their investment accounts. It is also alleged that he
conducted discretionary trading without approval, and that he
personally compensated clients for financial losses without the
knowledge or approval of his firm.
The set date hearing is open to the public, unless the panel orders
otherwise. The date for the discipline hearing will be made available
Hearing Date: 9:30 am, Thursday, January 13, 2011
Location: Legal Transcript Services, 390 Bay Street, 11th floor,
Specifically, it is alleged that:
From January 2008 to January 2009, Mr. McErlean engaged in business
conduct unbecoming or detrimental to the public interest, contrary to
IIROC Rule 29.1 in that he:
provided falsified account documents to two clients; and
misrepresented investment information to two clients about their
From July 2005 to January 2009, Mr. McErlean made discretionary trades
in the account of a client without first having the client's written
authorization or having the account approved as discretionary by his
firm, contrary to IIROC Rule 1300.4.
Between December 2008 and January 2009, Mr. McErlean personally
compensated two of his clients for losses in their accounts without the
knowledge or approval of his firm, contrary to IIROC Rule 29.1.
IIROC formally began the investigation into Mr. McErlean's conduct in
March 2009. The allegations occurred when Mr. McErlean was a Registered
Representative with the Toronto branch of CIBC World Markets, an
IIROC-regulated firm. Mr. McErlean is no longer a registrant with an
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 and permanent bans or
terminations 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.
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
For further information:
|For further information, please contact: |
Vice President, Enforcement
Director, Enforcement Litigation