TORONTO, June 18, 2013 /CNW/ - On June 18, 2013, a Hearing Panel of the
Investment Industry Regulatory Organization of Canada (IIROC), accepted
a Settlement Agreement, with sanctions, between IIROC staff and Scotia
Scotia Capital Inc. admitted that it failed to comply with its trading
Specifically, Scotia Capital Inc. admitted to the following violations:
(a) Between June 2009 and November 2011, it failed to have adequate
policies and procedures in place or failed to implement those policies
and procedures to prevent and detect potential wash trades; and
(b) Between June 2009 and December 2010, it failed to adequately
implement its policies and procedures to prevent and detect potential
artificial pricing transactions relating to high closing.
Pursuant to the Settlement Agreement, Scotia Capital Inc. agreed to the
(a) A fine in the amount of $150,000.
Scotia Capital Inc. also agreed to pay costs in the amount of $10,000.
The Settlement Agreement 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 Scotia Capital Inc.'s
conduct in May 2011. The conduct occurred when Scotia Capital Inc. was
an IIROC-regulated firm. Scotia Capital Inc. is still an
* * *
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:
Senior Media and Public Affairs Specialist