TORONTO, Dec. 3 /CNW/ - The Investment Dealers Association of Canada
(IDA) announced today that a Hearing Panel has imposed discipline penalties
upon Mr. Frank Youden, at all material times Branch Manager at the Halifax,
Nova Scotia branch of RBC Dominion Securities, an IDA Member firm.
In its liability decision dated December 22, 2005, the Hearing Panel
found that Mr. Youden acted contrary to Policy 2 and Regulations 1300.1 (c)
and 1300.2 in that, between 2000 and 2002, he failed to: reasonably supervise
Approved Person Hugh Bagnell's client accounts; adequately address the high
turnover ratios in many of Mr. Bagnell's client accounts; adequately review a
number of monthly statements that generated more than $1,000 commission per
month; and contact Mr. Bagnell's clients himself to confirm the suitability of
the trading activity in the face of repeatedly high turnover ratios, high
commissions, significant losses and trading activity that was inconsistent
with the client objectives on file.
On February 5, 2007, the Panel dismissed Mr. Youden's motion to recuse
the Chair of the Panel and to strike the Panel.
In assessing the appropriate penalties, the Hearing Panel considered that
Mr. Youden was not enriched by the misconduct, had no disciplinary record and
cooperated in the IDA's investigation. However, the Panel also noted that Mr.
Youden's misconduct was significant and occurred over a prolonged period of
time. The Panel determined that the penalty must be severe enough to act as a
general deterrent in the industry and further the interest of the protection
of the public by promoting general adherence to industry rules and standards.
Pursuant to the penalty decision dated October 30, 2007, Mr. Youden is
fined $70,000, must pay $15,000 in costs and is required to re-write and pass
the Branch Managers Qualifying Examination by June 30, 2008.
Mr. Youden is currently Branch Manager at the Halifax, Nova Scotia branch
of RBC Dominion Securities.
The Investment Dealers Association of Canada (IDA) is the national
self-regulatory organization of the securities industry. The IDA's mission is
to protect investors, foster market integrity and enhance the efficiency and
competitiveness of the Canadian capital markets. The IDA enforces rules and
regulations regarding the sales, business and financial practices of its
member firms and their approved persons. Investigating complaints and
disciplining Members and approved persons is part of the IDA's regulatory
For further information:
For further information: Alex Popovic, Vice President, Enforcement,
(416) 943-6904 or firstname.lastname@example.org; Jeff Kehoe, Director, Enforcement
Litigation, (416) 943-6996 or email@example.com