Enforcement Notice - Decision- IN THE MATTER OF Patrick William McLaughlin, Andrew Michael McManus and Sharon Marie Lozinski - Settlement Accepted

CALGARY, May 13, 2015 /CNW/ - On April 28, 2015, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and Patrick William McLaughlin, Andrew Michael McManus and Sharon Marie Lozinski.

Mr. McLaughlin, Mr. McManus and Ms. Lozinski admitted to failing in their duties to act as gatekeepers to the capital markets by not asking any or sufficient questions regarding the transfer of certain securities amongst Mr. McLaughlin's clients.  Mr. McLaughlin was the registered representative for the clients, Mr. McManus was the branch manager and supervisor of Mr. McLaughlin, and Ms. Lozinski was an investment representative and Mr. McLaughlin's sales assistant.

Specifically, Mr. McLaughlin admitted to the following violation:

(a)

Between December 2010 and January 2011, McLaughlin, as registered representative, failed in his role as gatekeeper to the capital markets in that he failed to ask any or sufficient questions surrounding the transfer of certain securities amongst his clients, thereby acting contrary to IIROC Dealer Member Rule 29.1.

Specifically, Mr. McManus admitted to the following violation:

(a)

Between December 2010 and January 2011, McManus, as branch manager and supervisor of McLaughlin, failed in his role as gatekeeper to the capital markets in that he failed to ask any or sufficient questions of McLaughlin surrounding the transfer of certain securities amongst McLaughlin's clients, thereby acting contrary to IIROC Dealer Member Rule 29.1.

Specifically, Ms. Lozinski admitted to the following violation:

(a)

Between December 2010 and January 2011, Lozinski, as investment representative, failed in her role as gatekeeper to the capital markets in that she failed to ask any or sufficient questions surrounding the transfer of certain securities amongst clients of a registered representative for whom she was a sales assistant, thereby acting contrary to IIROC Dealer Member Rule 29.1.

Pursuant to the Settlement Agreement, Mr. McLaughlin agreed to the following penalties:

(a)	A $20,000 fine; and
(b)	A 30-day suspension in all registration capacities.

Mr. McLaughlin also agreed to pay costs in the amount of $5,000.

Pursuant to the Settlement Agreement, Mr. McManus agreed to the following penalty:

(a)	A $20,000 fine.

Mr. McManus also agreed to pay costs in the amount of $5,000.

Pursuant to the Settlement Agreement, Ms. Lozinski agreed to the following penalties:

(a)	A $5,000 fine; and
(b)	A requirement that she successfully complete the Ethics course offered by the Canadian Securities Institute within six months of the effective date of the Settlement Agreement.

The Settlement Agreement for Patrick William McLaughlin and Andrew Michael McManus is available at:
http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=62B0A5BCDE5847549AF8CC6F23D7292F&Language=en.

The Settlement Agreement for Sharon Marie Lozinski is available at:
http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=4D9E662FF0844BC4B236AE3A31B0DC6D&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. McLaughlin's conduct in June 2012.  The conduct occurred while he was a Registered Representative with the WestMount Corporate Campus branch of BMO Nesbitt Burns Inc., an IIROC-regulated firm.   Mr. McLaughlin is still employed at BMO Nesbitt Burns Inc. as a Registered Representative. 

IIROC formally initiated the investigation into Mr. McManus' conduct in February 2013.  The conduct occurred while he was a Branch Manager with the WestMount Corporate Campus branch of BMO Nesbitt Burns Inc., an IIROC-regulated firm.   Mr. McManus is still employed at BMO Nesbitt Burns Inc. as a Branch Manager. 

IIROC formally initiated the investigation into Ms. Lozinski's conduct in March 2013.  The conduct occurred while she was an investment representative with the WestMount Corporate Campus branch of BMO Nesbitt Burns Inc., an IIROC-regulated firm.   Ms. Lozinski is currently employed at Scotia Capital Inc. as an investment representative. 

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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

Enforcement Contact: Warren Funt, Vice President, Western Canada, 604 331-4750,[email protected]; Media Contact: Karen Archer, Senior Media and Public Affairs Specialist, 416 865-3046,[email protected]