Enforcement Notice - IN THE MATTER OF Toll Cross Securities Inc. - Settlement Accepted

TORONTO, May 7, 2014 /CNW/ - On April 15, 2014, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement between IIROC staff and Toll Cross Securities Inc. ("TCSI").

TCSI admitted to conduct involving its failure to comply with research analyst trading restrictions and research disclosure requirements.

Specifically, TCSI admitted that from March 2010 to March 2013, it violated Dealer Member Rule 3400 in that:


It permitted a research analyst to trade during the "Research Quiet Period" and against the analyst's current recommendation without prior written approval, some of which transactions occurred at another Dealer Member;


It issued research reports which contained inaccurate disclosure of information relating to potential conflicts of interest; and


The disclosure of its system for rating investment opportunities and the percentage of its recommendations which fell into each category was significantly outdated.


Pursuant to the Settlement Agreement, TCSI agreed to the following penalty:


A fine in the amount of $15,000.


TCSI also agreed to pay costs in the amount of $5,000.

The Settlement Agreement is available at http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=8A2DAF22670341D28DF03E3CD96551D7&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 TCSI's conduct in November 2011.  The conduct occurred at TCSI's head office in Toronto, Ontario.  TCSI is an IIROC-regulated firm.

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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: Enforcement Contact: Elsa Renzella, Vice President, Enforcement, 416 943-5877, erenzella@iiroc.ca; Media Contact: Karen Archer, Senior Media and Public Affairs Specialist, 416 865-3046, karcher@iiroc.ca



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