TORONTO, Jan. 19, 2017 /CNW/ - Following a protective order hearing held on January 18, 2017, with the consent of All Group Financial Services Inc. ("All Group"), a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) suspended the membership of All Group effective January 23, 2017.
The Hearing Panel ordered:
1. Pursuant to Section 8212(4)(i) of the Consolidated Rules, All Group's membership in IIROC shall be suspended effective January 23, 2017.
2. Pursuant to Section 8212(4)(ii) of the Consolidated Rules, All Group shall take steps to facilitate the orderly transfer of its client accounts remaining as at January 23, 2017 to Fidelity Clearing Canada ULC, and shall bear all transfer fees associated with any transfer of client accounts from Hampton Securities Ltd. to another Dealer Member within 60 days following All Group's suspension on January 23, 2017.
3. Pursuant to Section 8212(4)(iv) of the Consolidated Rules, All Group shall cease dealing with the public, including removing any of its websites from public access, effective January 23, 2017. For greater certainty, All Group shall continue to service its existing clients until the transfer of its client accounts is completed on or before January 20, 2017.
4. All Group shall comply with IIROC Dealer Member Rule 600 throughout the suspension period.
5. Effectively immediately, All Group shall report daily to IIROC staff on its risk adjusted capital until further order of a Hearing Panel.
6. All Group shall be and hereby is restricted from undertaking any of the following activities without first obtaining the written consent of IIROC's Vice President of Financial and Operations Compliance:
(a) reducing its capital in any manner including redemption, repurchase or cancellation of any of its shares;
(b) reducing or repaying any indebtedness which has been subordinated with the approval of IIROC;
(c) directly or indirectly making any payments by way of loan, advance, bonus, dividend, repayment of capital or other distribution of assets to any director, officer, partner, shareholder, related company or affiliate; and
(d) increasing non-allowable assets, unless a prior binding commitment to do so exists, or entering into any new commitments which would have the effect of materially increasing the non-allowable assets of the firm.
7. All Group shall preserve all books and records, including all hard copy and electronic records in All Group's possession or control (including any computer servers, hard drives and any other electronically-stored records in any form) (the "Records") for a period of seven years from the date on which each record is created or until further order of a Hearing Panel, which Records shall be made available upon request by IIROC staff and/or former clients of All Group within five business days or another mutually-agreed upon time period.
8. All Group shall maintain the Records at its head office premises currently located at 10 Bay Street, Suite 701, Toronto, Ontario, M5J 2R8, and shall pay any and all costs required for the purpose of such maintenance, and the Records shall not be moved without prior notice to and approval from IIROC staff.
9. At any time after January 23, 2017, IIROC staff may move without notice to All Group for an order terminating All Group's membership with IIROC.
10. If either IIROC staff or All Group wish to request the modification of any of the terms of this Order, they may do so by motion brought on no less than two days' notice to all parties and to the Hearing Panel.
The Hearing Panel's Order dated January 18, 2017 is available at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=8B0B496D6DB34C09B88D00E0C0ECEDDD&Language=en
The Hearing Panel's reasons for 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.
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IIROC is the national self-regulatory organization which oversees all investment dealers and their trading activity in Canada's debt and equity markets. IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while supporting healthy Canadian 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: Elsa Renzella, Vice-President, Enforcement, 416 943-5877, [email protected]; Media Contact: Karen Archer, Manager, Media Relations, 416 865-3046, [email protected]