MONTREAL, Jan. 20, 2012 /CNW/ - A Hearing Panel of the Investment
Industry Regulatory Organization of Canada (IIROC) has accepted a
Settlement Agreement between IIROC staff and Melkon Melkonian. Mr.
Melkonian admitted that he effected discretionary transactions in the
accounts of two clients and excessively traded in these accounts
without proper consideration of the client's best interest.
In the Settlement Agreement, Mr. Melkonian admitted to the following
From August 2004 to June 2009, he effected discretionary transactions in
the joint accounts of two clients, without either of those accounts
having been previously authorized by the firm as discretionary
accounts, contrary to IDA Regulation 1300.4 and 1300.5 (now IIROC Rules
1300.4 and 1300.5); and
From 2005 to 2008 inclusive, he engaged in unsuitable and improper sales
practices by excessively trading in the joint accounts of both clients
without proper consideration of the clients' best interest, contrary to
IDA By-law 29.1(ii) (now IIROC Rule 29.1).
Pursuant to the Settlement Agreement, Mr. Melkonian agreed to the
A $30,000 fine ; and
His registration in any capacity will be suspended for a period of three
Mr. Melkonian also agreed to pay costs in the amount of $5,000.
The Settlement Agreement and the Hearing Panel's Reasons for acceptance
dated November 28, 2011 are available at http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=E3A2295F69A744FBB2B8813B7507858C&Language=en
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. Melkonian's conduct
in September 2009. The violations occurred when he was a Registered
Representative with the Montreal branch of Canaccord Capital
Corporation, an IIROC-regulated firm. Mr. Melkonian is no longer a
registrant with 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:
| || |
| Enforcement Contact: |
Vice President, Quebec
| Media Contact: |
Director, Public Affairs