TORONTO, Nov. 5, 2013 /CNW/ - A hearing was originally scheduled before a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) in the matter of Paul Christopher Darrigo on October 21-24, 2013. The hearing has been adjourned to a future date to be determined.
The disciplinary hearing concerns allegations that Mr. Darrigo solicited sales of mutual funds which caused his clients to incur deferred sales charges or redemption fees, and therefore, were not in the best interest of his clients; obtained personal loans from two elderly clients and failed to attend an interview as requested by IIROC staff.
The hearing is open to the public, unless the panel orders otherwise. The 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.
Specifically, the allegations are that:
- Between October 2009 and January 2011, Mr. Darrigo acted against his clients' interest by effecting mutual fund transactions that triggered unnecessary deferred sales charges to his clients and undue commissions to himself, contrary to IIROC Dealer Member 1300.1(o).
- Between October and December 2010, Mr. Darrigo engaged in inappropriate personal financial dealings with two clients by borrowing from them, contrary to IIROC Dealer Member Rule 29.1.
- On or about November 7, 2011, Mr. Darrigo failed to attend and give information in respect of an investigation being conducted by IIROC staff, contrary to IIROC Dealer Member Rule 19.5.
IIROC formally initiated the investigation into Mr. Darrigo's conduct in March 2011. The alleged violations occurred when he was a Registered Representative with the Oakville branch of HSBC Securities (Canada) Inc., an IIROC-regulated firm. Mr. Darrigo is no longer a registrant with an IIROC-regulated firm.
The Notice of Hearing which sets out the allegations is available at: http://www.iiroc.ca/Documents/2012/3cb46f19-f9fc-4fbe-8e88-584c5337f054_en.pdf
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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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