CALGARY, Jan. 17 /CNW/ - A Hearing Panel of the Investment Industry
Regulatory Organization of Canada (IIROC) has accepted a Settlement
Agreement between IIROC staff and Paul Ryan Klemke.
In the agreement, Mr. Klemke admitted to unauthorized trading in client accounts;
violating his know-your-client and suitability obligations in certain
trading in client accounts; and trading in a security that was not
eligible for distribution.
Mr. Klemke has agreed to pay a $35,000 fine and $5,000 in costs. He has
also agreed to being prohibited from reapplying for registration with
IIROC until December 15, 2011. As conditions of re-approval in any
category, Mr. Klemke will be required to successfully complete the
Conduct and Practices Handbook examination and be subject to a one-year
period of strict supervision.
Specifically, Mr. Klemke admitted to engaging in conduct unbecoming and
detrimental to the public interest, contrary to IIROC Rule 29.1, by:
Making discretionary purchases of a single security in 42 separate
client accounts without their knowledge, and/or consent and/or
Engaging in unauthorized trading by redeeming mutual funds in client
accounts without the clients' knowledge and/or consent and/or prior
authorization, in order to fund the above purchases; and
Selling and/or attempting to sell a security to residents of
Saskatchewan when it was not eligible for distribution in that
IIROC began investigation into Mr. Klemke's conduct on May 15, 2008. The
violations occurred in March and/or April 2008, when Mr. Klemke was a
registered representative with a Calgary branch of Jennings Capital
Inc., an IIROC-regulated firm. Mr. Klemke is no longer registered 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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