IIROC announces settlement with National Bank Financial Inc.

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 requirements. 

National Bank Financial has agreed to pay a $250,000 fine and $30,000 in costs.

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-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:

Carmen Crépin
Vice President, Québec
      Elsa Renzella
Director, Enforcement Litigation


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