TORONTO, July 9, 2020 /CNW/ - On July 2, 2020, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and Darren Maurice Sampson.
Mr. Sampson admitted that he failed to ensure the suitability of a high-risk, speculative security purchased and held in his clients' accounts.
Specifically, Mr. Sampson admitted to the following violation:
(a) Between April 2011 and October 2015, the Respondent failed to use due diligence to ensure whether or not orders accepted and recommendations made were suitable for certain clients and within the bounds of good business practice, contrary to IIROC Dealer Member Rules 1300.1(a), (o), (p), (q) and (s).
Pursuant to the Settlement Agreement, Mr. Sampson agreed to the following penalty:
(a) A five year prohibition on re-registration with IIROC; and
(b) A fine in the amount of $25,000.
Mr. Sampson also agreed to pay costs in the amount of $2,500.
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 Mr. Sampson's conduct in December 2016. The alleged violations occurred while he was a Registered Representative with the Toronto branch of Gravitas Securities Inc., an IIROC-regulated firm. Mr. Sampson 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.
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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 more than 175 Canadian investment dealer firms and their more than 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]