Enforcement Notice Decision - IN THE MATTER OF Robert Jay Kilgannon - Settlement Accepted
06 Jun, 2013, 11:48 ET
TORONTO, June 6, 2013 /CNW/ - On May 28, 2013, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC), accepted a Settlement Agreement, with sanctions, between IIROC staff and Robert Jay Kilgannon.
Mr. Kilgannon admitted that he failed to use due diligence to ensure that a product he recommended to a client was suitable for her.
Specifically, Mr. Kilgannon admitted to the following violation(s):
Between February 2007 and January 2009, he:
|(i)||Failed to use due diligence to learn and remain informed of the essential facts concerning Nortel Cumulative Redeemable Class A Preferred Shares Series 5, contrary to IDA Regulation 1300.1(a) (now Dealer Member Rule 1300.1(a)); and|
|(ii)||Recommended the purchase of these shares to his client without using due diligence to ensure that the recommendations were suitable for the client based on her financial situation, investment knowledge, investment objectives and risk tolerance contrary to IDA Regulation 1300.1(q) (now Dealer Member Rule 1300.1(q)).|
Pursuant to the Settlement Agreement, Mr. Kilgannon agreed to the following penalty:
|(a)||A fine in the amount of $35,000;|
|(b)||A period of four months of close supervision commencing on the date of acceptance of the Settlement Agreement; and|
|(c)||Re-write and successfully complete the Conduct and Practices Handbook examination within 12 months of the acceptance of the Settlement Agreement.|
Mr. Kilgannon also agreed to pay costs in the amount of $5,000.
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 Mr. Kilgannon's conduct in April 2011. The conduct occurred when he was a Registered Representative with an Oshawa, Ont. branch of RBC Dominion Securities Inc., an IIROC-regulated firm, where Mr. Kilgannon is still registered.
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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Acting Vice President, Enforcement
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