IIROC announces date to schedule disciplinary hearing for Elizabeth Maureen Morrison and Randall Glen Bergh

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 Bergh.

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 at www.iiroc.ca.

Set Date Hearing:      10:00 am, February 4, 2011
Location:        Telus Convention Centre, Room Telus 104
      Calgary, AB

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

For further information:

Warren Funt
Vice President, Western Canada
        Elsa Renzella
Director, Enforcement Litigation


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