TORONTO, June 6, 2013 /CNW/ - On May 28, 2013, a Hearing Panel of the
Investment Industry Regulatory Organization of Canada (IIROC), accepted
a Settlement Agreement, with sanctions, between IIROC staff and Robert
Mr. Kilgannon admitted that he failed to use due diligence to ensure
that a product he recommended to a client was suitable for her.
Specifically, Mr. Kilgannon admitted to the following violation(s):
Between February 2007 and January 2009, he:
Failed to use due diligence to learn and remain informed of the
essential facts concerning Nortel Cumulative Redeemable Class A
Preferred Shares Series 5, contrary to IDA Regulation 1300.1(a) (now
Dealer Member Rule 1300.1(a)); and
Recommended the purchase of these shares to his client without using due
diligence to ensure that the recommendations were suitable for the
client based on her financial situation, investment knowledge,
investment objectives and risk tolerance contrary to IDA Regulation
1300.1(q) (now Dealer Member Rule 1300.1(q)).
Pursuant to the Settlement Agreement, Mr. Kilgannon agreed to the
A fine in the amount of $35,000;
A period of four months of close supervision commencing on the date of
acceptance of the Settlement Agreement; and
Re-write and successfully complete the Conduct and Practices Handbook
examination within 12 months of the acceptance of the Settlement
Mr. Kilgannon also agreed to pay costs in the amount of $5,000.
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 Mr. Kilgannon's conduct
in April 2011. The conduct occurred when he was a Registered
Representative with an Oshawa, Ont. branch of RBC Dominion Securities
Inc., an IIROC-regulated firm, where Mr. Kilgannon is still registered.
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:
Acting Vice President, Enforcement
Senior Media and Public Affairs Specialist