TORONTO, Nov. 29, 2011 /CNW/ - A penalty hearing has been scheduled
before a Hearing Panel of the Investment Industry Regulatory
Organization of Canada (IIROC) to determine the penalty to be imposed
in the matter of Shaun Gerard McErlean.
The Hearing Panel will consider the appropriate penalty to be imposed as
a result of its Decision and Reasons dated October 31, 2011, which
found Mr. McErlean provided falsified account documents to clients,
misrepresented investment information to clients about their accounts,
conducted discretionary trading, and personally compensated his clients
for losses in their accounts without the knowledge or approval of his
firm contrary to IIROC Rules 29.1 and 1300.4.
January 27, 2012, 10:00 am
Legal Transcript Services
350 Bay Street, 7th floor
The penalty hearing is open to the public, unless the Hearing Panel
orders otherwise. The panel's decision and reasons dated October 31,
2011 are available at:
The decision and reasons on penalty will be made available to the public
Specifically, the hearing panel found that Mr. McErlean committed the
following breach of the IIROC Rules:
1. From January 2008 to January 2009 Mr. McErlean engaged in business
conduct that is unbecoming or detrimental to the public interest,
contrary to IIROC Dealer Member Rule 29.1 and its predecessor IDA by-law 29.1 in that he:
(i) provided falsified account documents to two clients; and
(ii) misrepresented investment information to two clients about their
2. From July 2005 to January 2009 Mr. McErlean made discretionary trades
in the account of his client MR without first having the client's
written authorization or having the account approved as discretionary
by his firm, contrary to IIROC Dealer Member Rule 1300.4 and its predecessor IDA Regulation 1300.4.
3. Between December 2008 and January 2009, Mr. McErlean personally
compensated two of his clients for losses in their accounts without the
knowledge or approval of his Member firm, contrary to IIROC Dealer
Member Rule 29.1.
IIROC formally initiated the investigation into Mr. McErlean's conduct
in March, 2009. The violations occurred when Mr. McErlean was a
Registered Representative with the Toronto branch of CIBC World
Markets, an IIROC regulated firm. Mr. McErlean 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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