CALGARY, Nov. 5, 2013 /CNW/ - On October 17, 2013, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and Douglas Charles Allan.
Mr. Allan admitted that he failed in his know your client obligations and failed to ensure that recommendations were suitable for his client, who is a senior. The holdings in his client's account declined in value by 28% during a time period when the S&P/TSX Capped Composite Total Return Index increased by 7.7%.
Specifically, Mr. Allan admitted to the following violations:
|a)||Between February 2008 and September 2011, Mr. Allan failed to use due diligence to learn and remain informed of the essential facts relative to his client contrary to Dealer Member Rule 1300.1(a) (Investment Dealer Association by-law 1300.1(a) prior to June 1, 2008); and|
|b)||Between February 2008 and September 2011, Mr. Allan made unsuitable recommendations in the account of his client contrary to Dealer Member Rule 1300.1(q) (Investment Dealer Association by-law 1300.1 (q) prior to June 1, 2008).|
Pursuant to the Settlement Agreement, Mr. Allan agreed to the following penalties:
|a)||A fine of $60,000; and|
|b)||Re-write the Conduct and Practices Handbook exam.|
Mr. Allan also agreed to pay costs in the amount of $10,000.
The Settlement Agreement is available at:
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 Mr. Allan's conduct in January 2012. The violations occurred when he was a Registered Representative and President with the Red Deer branch of Retire First Ltd. Mr. Allan is still registered in the same capacity at Retire First Ltd.
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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 1877442-4322.
SOURCE: Investment Industry Regulatory Organization of Canada (IIROC) - General News
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