MONTRÉAL, May 8, 2013 /CNW/ - Following a disciplinary hearing held on October 16 and 17, 2012, in Montréal, Québec, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC), found that Roger Michael Biduk incorrectly defined the investment objectives and risk tolerance of certain clients, most of whom were retired or nearing retirement. He also recommended aggressive and speculative investment strategies, which were incompatible with his clients' personal and financial circumstances and which entailed substantial losses.
The Hearing Panel's decision dated April 23, 2013 is available at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=158A23896CA44BA996C310CEF5D29C19&Language=en.
Specifically, the Hearing Panel found that Mr. Biduk committed the following violations:
|(a)||Between February 2006 and May 2008, Mr. Biduk failed to know many of his clients, and to define their investment objectives and risk tolerance according to the personal and financial circumstances of each client, contrary to IDA Regulation 1300.1 (a);|
|(b)||Between February 2006 and May 2008, Mr. Biduk failed to exercise due diligence by recommending to many of his clients a high-risk trading strategy that was inappropriate to his clients' personal and financial circumstances, contrary to IDA Regulation 1300.1 (q).|
A separate hearing will be held to determine the penalty to be imposed on Mr. Biduk, 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.
IROC formally initiated the investigation into Mr. Biduk's conduct in September 2008. The violations occurred when Mr. Biduk was a Registered Representative with the Hudson branch of Union Securities Ltd., an IIROC-regulated firm. Mr. Biduk is no longer a registrant with an IIROC-regulated firm.
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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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