Enforcement Notice - Decision - IN THE MATTER OF Jeffrey Walker and Foster & Associates Financial Services Inc. - Settlement Accepted

TORONTO, April 3, 2017 /CNW/ - On March 21, 2017, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC Staff and Jeffrey Walker and Foster & Associates Financial Services Inc.

Mr. Walker admitted he provided confidential information to certain clients and traded in shares while in possession of confidential information. Foster & Associates Financial Services Inc. admitted failure to adequately supervise the trading activity in some of Mr. Walker's accounts.

Specifically, Mr. Walker admitted to the following violations:

(a)	During November and December 2012, Jeffrey Walker provided information concerning an issuer that was confidential to certain clients who then purchased shares of that issuer, contrary to IIROC Dealer Member Rule 29.1; and
(b)	During November and December 2012, Jeffrey Walker traded in shares of an issuer in his own account and in certain clients' accounts, when he was in possession of information concerning that issuer that was confidential, contrary to IIROC Dealer Member Rule 29.1.

Under the Settlement Agreement, Mr. Walker agreed to the following penalties:

(a)	A fine in the amount of $40,000;
(b)	Close supervision for 12 months; and
(c)	Disgorgement of commission and fees in the amount of $4,427.

Mr. Walker also agreed to pay costs in the amount of $2,000.

Specifically, Foster & Associates Financial Services Inc. admitted to the following violation:

(a)  During late 2012, Foster & Associates Financial Services Inc. failed to adequately supervise the trading activity in certain of Jeffrey Walker's personal and client accounts, contrary to Dealer Member Rules 38 and 2500.

Under the Settlement Agreement, Foster & Associates Financial Services Inc. agreed to the following penalty:

(a)	A fine in the amount of $35,000.

Foster & Associates Financial Services Inc. also agreed to pay costs in the amount of $2,000.

The Settlement Agreement is available at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=39664E64DC67498CAE8E23E2C7AFCAE2&Language=en

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 Mr. Walker's and Foster & Associates Financial Services Inc.'s conduct in December 2013 and September 2014. The conduct occurred while Mr. Walker was a Registered Representative with the Toronto, Ontario office of Foster & Associates Financial Services Inc., an IIROC-regulated firm. Mr. Walker is currently a registrant with Foster & Associates Financial Services Inc.

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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

Enforcement Contact: Elsa Renzella, Vice-President, Enforcement, 416 943-5877, [email protected]; Media Contact: Karen Archer, Manager, Media Relations, 416 865-3046, [email protected]

Related Links

http://www.iiroc.ca