IIROC announces penalty for James Charles Dennis

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 firm; and
  • 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.

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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:

For further information, please contact:          
Jeff Kehoe
Vice President, Enforcement

Elsa Renzella
Director, Enforcement Litigation
416 943-5877


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