MONTREAL, Jan. 21 /CNW/ - A Hearing Panel of the Investment Industry
Regulatory Organization of Canada (IIROC) has accepted a settlement
agreement, which includes sanctions, between IIROC staff and National
Bank Financial Inc.
In the agreement, NBF admits to violating the Universal Market Integrity Rules (UMIR) by
failing to meet its trading supervision obligations and audit trail
National Bank Financial has agreed to pay a $250,000 fine and $30,000 in
Specifically, NBF violated UMIR by:
Failing to meet its trading supervision obligations, contrary to UMIR 7.1 and Policy 7.1, particularly with regard to the trading activity of Paul Clarke and Todd O'Reilly, both of whom are alleged to have failed to transact business openly
and fairly and in accordance with just principles of trade.
Failing to record audit trail requirements such as client account number
and order price and/or quantity, as required by Part 11 of the Trading
Rules (National Instrument 23-101) contrary to UMIR 10.11(1).
The violations occurred between April 2006 and June 2007. Market
Regulation Services (now part of IIROC) began its formal investigation
into NBF's conduct on December 5, 2007. NBF is currently an
* * *
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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