VANCOUVER, April 16, 2019 /CNW/ - On December 20, 2018, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and Richard Hewat.
Richard Hewat admitted that he made unsuitable recommendations with respect to the accounts of three clients. He also executed trades in a client account without authorization.
Specifically, Mr. Hewat admitted to the following violation:
- Between June 2011 and December 2016, Mr. Hewat failed to use due diligence to ensure that recommendations were suitable for three clients, contrary to Dealer Member Rule 1300.1(q); and
- Between July 2014 and December 2016, Mr. Hewat conducted unauthorized trades in a client account, contrary to Dealer Member Rule 29.1 and Consolidated Rule 1400 (after September 1, 2016).
Pursuant to the Settlement Agreement, Richard Hewat agreed to the following penalty:
- $10,000 fine.
The Settlement Agreement is available at:
IIROC formally initiated the investigation into Mr. Hewat's conduct in May 2017. The violations occurred while he was a Registered Representative with the Kaslo sub-branch of Leede Jones Gable Inc. Mr. Hewat is no longer a registrant with an IIROC-regulated firm.
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 is the national self-regulatory organization which oversees all investment dealers and their trading activity in Canada's debt and equity markets. IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while supporting healthy Canadian 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 debt and 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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