TORONTO, July 12, 2012 /CNW/ - On June 18, 2012, a Hearing Panel of the
Investment Industry Regulatory Organization of Canada (IIROC) accepted
a Settlement Agreement between the IIROC staff and Portfolio Strategies
Portfolio Strategies admitted it failed to designate a supervisor
qualified to supervise options trading at the firm for approximately 11
months, and failed to supervise the activities of an individual working
in the corporate finance department for approximately nine months.
Specifically, Portfolio Strategies admitted to the following violations:
From approximately December 2009 to November 2010 Portfolio Strategies
failed to designate a supervisor qualified to supervise options trading
at the firm, contrary to IIROC Rule 1900.2 (a); and
From approximately March to December 2010 Portfolio Strategies failed to
supervise the activities of an individual who was a consultant and
agent of the firm, contrary to IIROC Rule 38.1.
Pursuant to the Settlement Agreement, Portfolio Strategies agreed to the
(a) a $40,000 fine;
Portfolio Strategies also agreed to pay costs in the amount of $3,500.
The Settlement Agreement is available at http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=F0108887D67C4A9AAFA127B84ACC8380&Language=en
and the Hearing Panel's decision will be made available at www.iiroc.ca.
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 Portfolio Strategies'
conduct in March 2011. The conduct occurred while it was an
IIROC-regulated firm, and continues to be registered as such.
* * *
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
Director, Public Affairs