TORONTO, July 3, 2020 /CNW/ - On June 30, 2020, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff, Richardson GMP Limited and Blair Robert Pytak.
Richardson GMP Limited (RGMP) admitted failing to supervise the activities of two Registered Representatives, and failing to establish and maintain adequate internal controls relating to certain options trading. Mr. Pytak admitted failing to supervise the activities of a Registered Representative.
Specifically, Richardson GMP Limited and Mr. Pytak admitted to the following contraventions:
(a) Between July 2011 and October 2015, RGMP failed to supervise the activities of Preston Henry Smith, and between August 2012 and December 2015, failed to supervise the activities of Adam William Woodward contrary to Dealer Member Rules 38.1 and 2500;
(b) Between August 2014 and December 2015, Pytak, a Supervisor at Richardson GMP Limited in Calgary, failed to supervise the activities of Woodward contrary to Dealer Member Rule 38.4; and
(c) Between June 2013 and November 2015, RGMP failed to establish and maintain adequate internal controls relating to certain options trading contrary to Dealer Member Rule 17.2A.
Pursuant to the Settlement Agreement, Richardson GMP Limited agreed to the following penalty:
(a) a fine of $500,000.
Richardson GMP Limited also agreed to pay costs in the amount of $50,000.
Pursuant to the Settlement Agreement, Mr. Pytak agreed to the following penalty:
(a) a fine of $24,000; and
(b) a two year prohibition on approval as a Supervisor; and
(c) re-write of Branch Managers' Examination prior to being approved as a supervisor.
The Settlement Agreement is available at
The Hearing Panel's decision will be made available at www.iiroc.ca.
IIROC formally initiated the investigation into Richardson GMP Limited's conduct in May 2016. Richardson GMP Limited is an IIROC-regulated firm.
IIROC formally initiated the investigation into Mr. Pytak's conduct in June 2016. The conduct occurred while he was a Supervisor and Registered Representative with the Calgary branch of Richardson GMP Limited, an IIROC-regulated firm. Mr. Pytak is currently a Registered Representative at the Calgary branch of Richardson GMP Limited.
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.
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IIROC is the pan-Canadian self-regulatory organization that 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 175 Canadian investment dealer firms and their nearly 30,000 registered employees, the majority of whom are commonly referred to as investment advisors. IIROC also sets and enforces 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
For further information: Enforcement Contact: Charles Corlett, Director, Enforcement Litigation, 416 646-7253, [email protected]; Media Contact: Andrea Zviedris, Manager, Media Relations, 416 943-6906, [email protected]