IIROC announces settlements with Paul Clarke and Todd O'Reilly

MONTREAL, Jan. 21 /CNW/ - A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has accepted settlement agreements between IIROC staff and Paul Clarke and Todd O'Reilly.

In the agreements, Mr. Clarke and Mr. O'Reilly admit that they failed to transact business openly and fairly, and in accordance with just and equitable principles of trade, contrary to the Universal Market Integrity Rules (UMIR).

In his agreement, Mr. Clarke agrees to pay a $110,000 fine and $5,000 in costs. In Mr. O'Reilly's agreement, he agrees to pay a $15,000 fine and $2,500 in costs.

Specifically, Mr. Clarke and Mr. O'Reilly each violated UMIR by entering orders without identifying client accounts, holding the unallocated trades in a firm inventory account for up to 30 days, and later giving preferential treatment to clients by, on more than one occasion, allocating those securities to the account of a client who had not placed the original order. This conduct violates UMIR 2.1 and UMIR Policy 2.1.

Both individuals also violated UMIR 10.11(1) by causing audit trail violations by entering orders with repeated deficiencies such as failing to record client account numbers, order price and/or quantity, as required by Part 11 of the Trading Rules (National Instrument 23-101).

The violations occurred between April 2006 and June 2007. During this period, Mr. Clarke was a Registered Representative and Mr. O'Reilly was an Investment Representative at National Bank Financial Inc., an IIROC-regulated firm. IIROC began its formal investigation into Mr. Clarke's conduct on June 17, 2008 and into Mr. O'Reilly's conduct on June 24, 2008. Mr. Clarke and Mr. O'Reilly are currently registered with National Bank Financial.

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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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