TORONTO, May 24, 2013 /CNW/ - On April 22, 2013, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC), accepted a Settlement Agreement, with sanctions, between IIROC staff, Alexey Eydelman and Questrade Inc.
|Mr. Eydelman admitted to the following violation:|
|(i)||Between August 2009 and February 20I0, Mr. Eydelman entered orders on the Toronto Stock Exchange that he ought reasonably to have known could reasonably be expected to create an artificial bid price for Quebecor Inc. Class A securities ("QBR.A") contrary to UMIR 2.2 and UMIR Policy 2.2.|
|Questrade Inc. admitted to the following violation:|
|(i)||From August 2009 until February 2010, Questrade Inc. failed to have adequate policies and procedures in place and a supervision system sufficient to prevent and detect potential artificial bid prices, contrary to UMIR 7 .I and UMIR Policy 7 .I.|
|Pursuant to the Settlement Agreement, Mr. Eydelman and Questrade Inc. agreed to the following penalties:|
|(a)||For Mr. Eydelman:|
|(i)||A three month suspension from access to an IIROC-regulated marketplace, to commence 30 days from the date of approval of this Settlement Agreement;|
|(ii)||A fine of $30,000; and|
|(iii)||Costs in the amount of $5,000.|
|(b)||For Questrade Inc.:|
|(i)||A fine of $70,000; and|
|(ii)||Costs in the amount of $10,000.|
The Settlement Agreement 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 the Mr. Eydelman and Questrade's conduct in November 2010. The conduct occurred when Mr. Eydelman was a registered trader with Questrade Inc., an IIROC-regulated firm. Mr. Eydelman is currently employed by Questrade in that capacity.
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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
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