IIROC announces penalty against Patrick Cooney and Jory Capital Inc.

CALGARY, Feb. 9 /CNW/ - A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has imposed penalties against Jory Capital Inc. and Patrick Cooney, Jory's Chief Executive Officer, President and sole director.

In a penalty hearing held on January 18, 2011, the Hearing Panel issued Mr. Cooney a $100,000 fine and a permanent ban from registration in all capacities with IIROC, with the exception of Registered Representative, Investment Representative or Trader. Jory Capital was ordered to pay a $120,000 fine. Jory must also retain a compliance consultant for at least one year, and pay $10,000 in costs. 

Jory and Mr. Cooney have indicated that they intend to appeal the Penalty Decision to the Manitoba Securities Commission.

The penalty follows the panel's earlier decision, described in a November 22, 2010 news release, which found that Jory Capital and Mr. Cooney violated IIROC Rules and the Universal Market Integrity Rules (UMIR) by failing: in the case of Mr. Cooney, to take measures to ensure the firm met compliance standards with regard to the monitoring of regulatory capital and the reliability of financial reporting; and, in the case of Jory, by failing to maintain adequate risk adjusted capital (RAC).

Specifically, the panel's November decision found that:

  • Mr. Cooney failed to ensure that Jory design, establish, oversee and implement an effective financial compliance program to ensure proper compliance with regulatory requirements regarding maintenance of adequate risk-adjusted capital (RAC), monitoring of regulatory capital and reliability of financial reporting, contrary to IIROC Rules 29 and 2600.
  • Mr. Cooney failed to ensure that Jory establish, maintain, and enforce a supervisory system, contrary to IIROC Rule 38; and failed to ensure that Jory develop and implement a trade supervision policy, as required by UMIR 7.1.
  • Mr. Cooney engaged in conduct unbecoming and detrimental to the public interest by failing to ensure that Jory fulfilled representations provided to IIROC, contrary to IIROC Rule 29.1.
  • Jory failed to maintain its RAC greater than zero on January 24, 2008, during the months of June to October 2009, and again on April 14, 2010, all contrary to IIROC Rule 17.1.

IIROC formally initiated the investigation into Mr. Cooney's and Jory's conduct on September 28, 2009. The violations occurred between 2005 and 2009 when Mr. Cooney was registered as Director with the Winnipeg office of Jory, an IIROC-regulated firm. Mr. Cooney continues to be registered at the same office.

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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