MONTRÉAL, Aug. 4, 2016 /CNW/ - A discipline hearing was originally scheduled before a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) in the matter of Samuel Kloda on August 29-31, 2016. The discipline hearing was adjourned to November 14-17, 2016.
The hearing concerns allegations that Mr. Kloda:
a) Failed in his duty to know the clients and failed to use due diligence to ensure that his recommendations were suitable for his clients when he practiced an aggressive investment strategy geared to short-term gains;
b) Engaged in discretionary trading in a client's account, without first having it approved and accepted as a discretionary account; and
c) Engaged in excessive trading in a client's accounts for the purpose of generating additional commissions and without any advantage to the client.
The hearing is open to the public, unless the Hearing Panel orders otherwise. The decision of the Hearing Panel 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.
Hearing dates: November 14, 15, 16 and 17, 2016, at 9:00 a.m.
Location: Centre Mont-Royal
2200 Mansfield Street
Specifically, the allegations are that:
a) Between August 3, 2009 and December 16, 2014, Mr. Kloda failed to use due diligence to ensure that his recommendations to buy, sell and/or hold securities were suitable for four clients, contrary to IIROC Dealer Member Rule 1300.1(q);
b) Between August 2009 and December 2014, Mr. Kloda failed to use due diligence to learn and remain informed of the essential facts relative to four of his clients, contrary to IIROC Dealer Member Rule 1300.1(a);
c) Between November 29, 2010 and February 16, 2011, Mr. Kloda effected discretionary trades in the account of one client, without the account having been pre-approved as a discretionary account, contrary to IIROC Dealer Member Rule 1300.4; and
d) Between January 1 and December 31, 2011, Mr. Kloda engaged in conduct unbecoming by trading excessively (churning) in a client's accounts with the intention of generating additional commissions, contrary to IIROC Dealer Member Rule 1300.1(o) and IIROC Dealer Member Rule 29.1.
IIROC formally initiated the investigation into Mr. Kloda's conduct in November 2013. The alleged violations occurred when Mr. Kloda was a Registered Representative with the Montréal branch of Mackie Research Capital Corporation (Mackie), an IIROC-regulated firm. Mr. Kloda is currently a Registered Representative and still works for Mackie.
The Notice of Hearing which sets out the allegations is available at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=F26B700FD16841049D7BB1E9A9DC54B0&Language=en
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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: Claudyne Bienvenu, Vice-President, Québec, 514 878-2854, [email protected]; Media Contact: Karen Archer, Manager, Media Relations, 416 865-3046, [email protected]