VANCOUVER, June 3, 2013 /CNW/ - On May 21, 2013, a Hearing Panel of the
Investment Industry Regulatory Organization of Canada (IIROC), accepted
a Settlement Agreement, with sanctions, between IIROC staff and Henry
Mr. Martens admitted that he failed to use due diligence to know the
essential facts relative to two of his customers and to ensure that the
recommendations he made for them were suitable.
Specifically, Mr. Martens admitted to the following violation(s):
From approximately January 26, 2007 to June 2, 2009, he failed to use
due diligence to learn and remain informed of the essential facts
relative to two customers, contrary to IDA Regulation 1300.1(a) ( IIROC
Rule 1300.1(a) after June 1, 2008); and
From approximately February 1, 2007 to April 13, 2008, he failed to use
due diligence to ensure the recommendations he made for two customers
were suitable based on their financial situation, investment knowledge,
investment objectives and risk tolerance, contrary to IDA Regulation
Pursuant to the Settlement Agreement, Mr. Martens agreed to the
A fine in the amount of $50,000; and
A one-year suspension of approval in any capacity.
Mr. Martens also agreed to pay costs in the amount of $5,000.
The Settlement Agreement is available at:
http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=2DFB4B826C50408495748F1DCB530916&Language=en and the decision of the Hearing Panel 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. Martens' conduct in
February 2012. The alleged violations occurred when he was a
Registered Representative with the Kelowna branch of Wolverton
Securities Ltd., an IIROC-regulated firm. Mr. Martens 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
Senior Media and Public Affairs Specialist