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.
* * *
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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