Enforcement Notice - Decision - IIROC Reaches Settlement Agreement With Worldsource Securities Inc.

TORONTO, Jan. 7, 2019 /CNW/ - On December 19, 2018, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and Worldsource Securities Inc.

Worldsource Securities Inc. admitted that:

(i)	between January 2010 and January 2017, it failed to establish and maintain a system of internal controls and supervision reasonably designed to achieve compliance with IIROC's rules, including the requirement to deal fairly with clients as it relates to fees, contrary to Dealer Member Rules 38.1 and 2500; and
(ii)	between April 2013 and November 2015, it failed to take reasonable steps to identify and address an existing and potential material conflict of interest contrary to Dealer Member Rule 42.

Pursuant to the Settlement Agreement, Worldsource Securities Inc. agreed to the following penalty:

(a)	a fine in the amount of $100,000, broken down as follows:
	i.	$50,000 with respect to contravention (i); and
	ii.	$50,000 with respect to contravention (ii).

Worldsource Securities Inc. also agreed to pay costs in the amount of $5,000.

The Settlement Agreement is available at
http://www.iiroc.ca/Documents/2019/6313ad10-6b5f-4c11-a516-ba94674c47f5_en.pdf.

The Hearing Panel's decision will be made available at www.iiroc.ca.

IIROC formally initiated the investigation into the conduct of Worldsource Securities Inc. in September 2015.  Worldsource Securities Inc. is 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.

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IIROC is the national 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 more than 170 Canadian investment dealer firms and their more than 29,000 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

Enforcement Contact: Charles Corlett, Director, Enforcement Litigation, 416.646.7253, [email protected]; Media Contact: Andrea Zviedris, Manager, Media Relations, 416 943-6906, [email protected]

Related Links

www.iiroc.ca