TORONTO, June 29, 2011 /CNW/ - A Hearing Panel of the Investment
Industry Regulatory Organization of Canada (IIROC) has imposed its
penalty against James Charles Dennis. The penalty follows the panel's
decision which found that Mr. Dennis failed to disclose certain outside
business activities to his firm and its compliance staff.
The penalty against Mr. Dennis includes:
A fine in the amount of $321,855.14, including disgorgement of
$291,855.14, which was the net profit he earned from the outside
business activities not reported to his firm;
A requirement to re-write and pass the Conduct and Practices Handbook
examination before re-registering with an IIROC-regulated firm;
A requirement to be subject to strict supervision by his employer for
one year from the date of being re-registered with an IIROC-regulated
Costs in the amount of $15,000.
"The fine also includes a further amount of $30,000 to reinforce the
importance of deterring conduct of this nature," the panel stated.
Specifically, in its earlier decision dated January 21, 2011, the panel found that Mr. Dennis entered into an
arrangement in which he referred clients to a mutual fund advisor and
received commission earnings in return. Mr. Dennis did not disclose
this arrangement or the compensation to his employer, despite
completing annual questionnaires for his firm about outside business
activities. The panel found that his actions constituted conduct
unbecoming or detrimental to the public interest, contrary to IIROC Rule 29.1.
The violations occurred between approximately June 2007 and September
2008, when Mr. Dennis was a Registered Representative with the Toronto
branch of IPC Securities Corp, an IIROC-regulated firm. IIROC began the
investigation into Mr. Dennis' conduct in October 2008. He is no longer
a registrant with 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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