TORONTO, June 24, 2013 /CNW/ - On June 10, 2013, a Hearing Panel of the
Investment Industry Regulatory Organization of Canada (IIROC) accepted
a Settlement Agreement, with sanctions, between IIROC staff and Derek
George Laidlaw Axford.
Mr. Axford admitted that he failed to use due diligence to ensure that
investment recommendations were suitable for his clients and to learn
and remain informed of the essential facts relative to orders accepted
when his clients purchased certain inverse exchange-traded funds.
Specifically, Mr. Axford admitted to the following violations:
From April 2010 to August 2011, he failed to use due diligence to ensure
that investment recommendations were suitable for his clients, contrary
to IIROC Dealer Member Rule 1300.1(q); and
From April 2010 to August 2011, he failed to use due diligence to learn
and remain informed of the essential facts relative to orders accepted,
when his clients purchased certain inverse exchange traded funds,
contrary to IIROC Dealer Member Rule 1300.1(a).
Pursuant to the Settlement Agreement, Mr. Axford agreed to the following
A suspension from approval in any registered capacity with IIROC for a
period of four months;
A fine of $30,000;
A requirement that Mr. Axford successfully complete the Conduct and
Practices Handbook (CPH) course prior to seeking re-registration; and
A requirement that Mr. Axford be placed under close supervision for a
period of six months upon re-approval.
Mr. Axford also agreed to pay costs in the amount of $2,500.
The Hearing Panel's decision dated June 10, 2013 is available at:
Documents related to ongoing IIROC enforcement proceedings - including
Reasons and Decisions of Hearing Panels - are posted on the IIROC
website as they become available. Click here to search and access all IIROC enforcement documents.
IIROC formally initiated the investigation into Mr. Axford's conduct in
September 2011. The conduct occurred when he was a Registered
Representative with a London, Ontario branch of RBC Dominion
Securities, an IIROC-regulated firm. Mr. Axford is currently employed
as a Registered Representative with the Komoka, Ontario branch of
Worldsource Securities Inc., an IIROC-regulated firm.
* * *
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.
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, permanent bars,
expulsion from membership, or termination of rights and privileges 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.
SOURCE: Investment Industry Regulatory Organization of Canada (IIROC) - General News
For further information:
Vice President, Enforcement
Senior Media and Public Affairs Specialist