MONTREAL, Jan. 7 /CNW/ - A Hearing Panel of the Investment Dealers
Association of Canada (IDA), appointed pursuant to By-law 20, has imposed
discipline penalties on Simon Paul Sénécal, at all material times an Approved
Person with the Montréal branch of National Bank Financial Inc. (NBF), an IDA
On November 7, 2007, the Hearing Panel considered, reviewed, and accepted
a Settlement Agreement negotiated between staff of the IDA's Enforcement
department and Mr. Sénécal. Pursuant to the Settlement Agreement, Mr. Sénécal
admitted to: allowing his partner, Mr. Gilbert Pelletier, to advise and
execute options orders when neither he nor his partner was registered to
advise/trade in options; allowing his partner to recommend to clients that
they open options accounts when they were unsuitable for them; failing to
ensure that options trading for his clients was referred to an options
licensed registered representative as required by his employer; and allowing
his partner to recommend unsuitable options trades for their clients. Mr.
Sénécal admitted that this conduct was in contravention of IDA Regulations
1900.2(b), 1300.1(p), 1300.1(q) and By-law 29.1. This misconduct took place in
2000 and 2001 and was discovered by the IDA in September 2003 from a ComSet
In the Hearing Panel's decision approving the settlement with Mr.
Sénécal, the Hearing Panel noted that there were significant client losses
because of the options trading. The clients have since been compensated for
For his misconduct, Mr. Sénécal has been suspended in any capacity for
four months; prohibited from being registered to sell options for five years;
fined $45,000; and is required to pay $5,000 in costs. In addition he is
required to rewrite and pass the exam based on the Conduct and Practices
Handbook within 6 months and must be under strict supervision for 18 months
upon re-approval with an IDA Member firm.
Although still employed with NBF, Mr. Sénécal is currently suspended as
per the terms of the Settlement Agreement.
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
role. It is IDA policy to ensure that where relevant, referrals to the
appropriate policing authority are made.
For further information:
For further information: Carmen Crépin, Vice-President, Québec, (514)
878-2854 or firstname.lastname@example.org; Jeffrey Kehoe, Director, Enforcement Litigation,
(416) 943-6996 or email@example.com