CALGARY, Jan. 24 /CNW/ - A Hearing Panel of the Investment Industry
Regulatory Organization of Canada (IIROC) will meet to set a date for a
disciplinary hearing for Elizabeth Maureen Morrison and Randall Glen
The hearing concerns allegations that Ms. Morrison failed in her Know-Your-Client (KYC) obligations when
she signed up 171 new client accounts and those clients collectively
invested approximately $10.3 million in a non-brokered private
placement of preferred shares in Arbour Energy Inc., even though the
investment was not suitable for many clients, and approximately 68
clients did not qualify for the exemption she was relying on to
facilitate their purchases.
The hearing also concerns allegations that Mr. Bergh, the Branch
Manager, failed to properly supervise Ms. Morrison and failed in his
supervisory duties concerning the approval of new client accounts.
The set date hearing is open to the public, unless the panel orders
otherwise. The date for the disciplinary hearing will be made available
Set Date Hearing:
10:00 am, February 4, 2011
Telus Convention Centre, Room Telus 104
Specifically, the allegations are that Ms. Morrison:
i. failed to use due diligence to learn and remain informed of the
essential facts relative to every client and to every order or account
accepted, contrary to IIROC Rule 1300.1(a);
ii. failed to use due diligence to ensure that the acceptance of any
order from a customer is suitable for such customer contrary to IIROC Rule 1300.1(p); and
iii. facilitated the purchase of a private placement by clients for
which the issuer relied on certain exemptions from the registration and
prospectus requirements of applicable securities legislation when those
clients did not qualify for exemption, which constituted conduct
unbecoming and detrimental to the public interest, contrary to IIROC Rule 29.1.
Furthermore, it is alleged that Mr. Bergh, in his capacity as branch
manager, failed to take the supervisory steps that were reasonably
required when approving client accounts, contrary to IIROC Rule 1300.2(a), IIROC Rule 2500, and IIROC Rule 29.1.
The alleged violations occurred between September 2004 and October 2005.
IIROC began its formal investigation into Ms. Morrison's and Mr.
Bergh's conduct in September 2010. The alleged violations occurred when
Ms. Morrison was a Registered Representative and Mr. Bergh was the
Branch Manager at the Calgary branch of Blackmont Capital Inc., now
known as Macquarie Private Wealth Inc. Ms. Morrison is currently a
Registered Representative with the Calgary branch of PI Financial
Corp., an IIROC-regulated firm. Mr. Bergh is currently a Registered
Representative with the Calgary branch of Macquarie Private Wealth
Inc., an IIROC-regulated firm.
* * *
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
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