Enforcement Notice - IN THE MATTER OF Scotia Capital Inc. - Settlement Accepted
18 Jun, 2013, 17:10 ET
TORONTO, June 18, 2013 /CNW/ - On June 18, 2013, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC), accepted a Settlement Agreement, with sanctions, between IIROC staff and Scotia Capital Inc.
Scotia Capital Inc. admitted that it failed to comply with its trading supervision obligations.
Specifically, Scotia Capital Inc. admitted to the following violations:
(a) Between June 2009 and November 2011, it failed to have adequate policies and procedures in place or failed to implement those policies and procedures to prevent and detect potential wash trades; and
(b) Between June 2009 and December 2010, it failed to adequately implement its policies and procedures to prevent and detect potential artificial pricing transactions relating to high closing.
Pursuant to the Settlement Agreement, Scotia Capital Inc. agreed to the following penalty:
(a) A fine in the amount of $150,000.
Scotia Capital Inc. also agreed to pay 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 Scotia Capital Inc.'s conduct in May 2011. The conduct occurred when Scotia Capital Inc. was an IIROC-regulated firm. Scotia Capital Inc. is still 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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