TORONTO, Feb. 12, 2015 /CNW/ - Following a set date hearing held on September 30, 2014, in Charlottetown, Prince Edward Island, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) in the matter of John Phillip Watts and Sean Thomas Hickey, ordered that:
(a) IIROC Staff shall deliver disclosure to Counsel for the Respondents by no later than December 19th, 2014; and
(b) This matter is otherwise adjourned to 10:00 a.m., Thursday February 26, 2015, and will be conducted via conference call. At this time the parties will make submissions to the Hearing Panel in respect of the status of the matter including submissions in relation to setting dates for the delivery of Responses, a Pre-Hearing Conference, delivery of experts' reports, and any other outstanding issues. The conference call will be open to the public, unless the Hearing Panel orders otherwise.
The set date appearance is open to the public, unless the Hearing Panel orders otherwise. The decision of the Hearing Panel will be made available at www.iiroc.ca.
Set Date Appearance:
February 26, 2015, at 10:00 a.m. (PEI Time).
Quality Inn & Suites Charlottetown
150 Euston Street
Charlottetown, Prince Edward Island
Telephone: (902) 894-8572
CONFERENCE CALL INFORMATION:
Local Dial In: 416-443-4589
Toll Free Dial In: 1-866234-0247
Conference ID: 5312494
The Hearing Panel's order dated October 30, 2014, is available at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=9BBD290877F44BEB848721CC81483276&Language=en.
The Notice of Hearing is available at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=ECEFB89E73F54C6ABC0DEE74AB25B7C5&Language=en.
The hearing concerns allegations that Mr. Watts and Mr. Hickey failed to use due diligence to ensure that recommendations were suitable for clients, that Mr. Watts engaged in unauthorized trading, and that Mr. Watts failed to use due diligence to learn the essential facts relative to his clients.
Specifically, the allegations are that:
a) From July 2007 to December 2010, Mr. Watts and Mr. Hickey failed to use due diligence to ensure that recommendations were suitable for their clients, contrary to IIROC Dealer Member Rule 1300.1(q) (IDA Regulation 1300.1(q) prior to June 1, 2008);
b) From May to June 2008, Mr. Watts engaged in unauthorized trading in a client account, contrary to IIROC Dealer Member Rule 29.1(IDA By-law 29.1 prior to June 1, 2008); and
c) From July 2007 to December 2010, Mr. Watts failed to use due diligence to learn the essential facts relative to his clients, contrary to IIROC Dealer Member Rule 1300.1(a)(IDA Regulation 1300.1(a) prior to June 1, 2008).
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. Watts' and Mr. Hickey's conduct in March 2012. The alleged violations occurred when they were Registered Representatives with the Charlottetown branch of Wellington West Capital Inc., now National Bank Financial Ltd., an IIROC-regulated firm. Mr. Watts and Mr. Hickey are currently registered with National Bank Financial Ltd.; however Mr. Watts has been on medical leave since November 2011.
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
For further information: Enforcement Contact: Elsa Renzella, Vice President, Enforcement, 416 943-5877, [email protected]; Media Contact: Karen Archer, Senior Media and Public Affairs Specialist, 416 865-3046, [email protected]