TORONTO, April 12, 2013 /CNW/ - Following a disciplinary hearing held between October 15-18, 2012, in Halifax, Nova Scotia, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC), found that John Edward Brodie made unsuitable investment recommendations, effected discretionary trades and personally compensated clients for account losses.
The Hearing Panel's decision dated March 22, 2013 is available at:
Specifically, the Panel found that Mr. Brodie committed the following violations:
|a)||Between 2005 and 2009, Mr. Brodie made investment recommendations that were unsuitable for two clients, contrary to IIROC Dealer Member Rule 1300.1(q) (IDA Regulation 1300.1(q) prior to June 1, 2008);|
|b)||Between 2005 and 2009, Mr. Brodie made discretionary trades in the accounts of two clients without first having the accounts approved and accepted as discretionary accounts, contrary to IIROC Dealer Member Rule 1300.4 (IDA Regulation 1300.4 prior to June 1, 2008); and,|
|c)||Between May 2008 and June 2009, Mr. Brodie personally compensated two clients for losses in their accounts without the knowledge or approval of his Member firm, contrary to IIROC Dealer Member Rule 29.1 (IDA By-law 29.1 prior to June 1, 2008).|
A separate hearing will be held to determine the penalty to be imposed on Mr. Brodie, the date of which 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. Brodie's conduct in March 2011. The alleged violations occurred when he was a Registered Representative with the Halifax branch of Canaccord Capital Corp (now Canaccord Genuity Corp.), an IIROC-regulated firm. Mr. Brodie is currently a Registered Representative with the Dartmouth branch of Global Maxfin Capital Inc., an IIROC-regulated firm.
* * *
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
For further information:
Acting VP, Enforcement
Senior Media and Public Affairs Specialist