IIROC announces disciplinary hearing for Melaney Phillips

VANCOUVER, Feb. 7 /CNW/ - A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has scheduled a hearing to hear evidence and submissions in the matter of Melaney Phillips.

The hearing concerns allegations that Ms. Phillips made unsuitable recommendations and discretionary purchases in client accounts, performed client services for which she was not qualified and sold some of her own shares to a client without ensuring the client obtained the shares at the best available price.

The hearing is open to the public, unless the panel orders otherwise. The panel's decision will be made available at www.iiroc.ca

Hearing Date:      10:00 a.m. on April 6, 7 and 8, 2011
Location:      Reportex Agencies Ltd.,
925 West Georgia Street - Suite 1010
Vancouver, B.C.    

Specifically, it is alleged that Ms. Phillips:

(a)  recommended and purchased securities for two client accounts even though the investments were unsuitable for the clients' investment profiles, contrary to IIROC Rule 1300.1 (q);
(b)  made discretionary purchases in a client account, contrary to IIROC Rule 1300.4;
(c)  prepared tax returns for two clients and charged a fee for those services, without prior approval from her firm and without any formal training or designation, which constitutes conduct unbecoming and detrimental to the public interest, contrary to IIROC Rule 29.1; and
(d)  recommended and purchased shares for a client account from her own personal holdings. In doing so, she failed to advise the client that she had an interest in the transaction, which is conduct unbecoming and detrimental to the public interest, contrary to IIROC Rule 29.1. She also failed to take reasonable steps to ensure her client received the best available price for the shares, contrary to Part 8.1 of the Universal Market Integrity Rules (UMIR).

The alleged violations occurred in 2007 and 2008, while Ms. Phillips was a Registered Representative with the Kelowna, British Columbia branch of Canaccord Genuity Corp., an IIROC-regulated firm. IIROC began its formal investigation into Ms. Phillips' conduct on February 20, 2009. Ms. Phillips is no longer registered with an IIROC-regulated firm.

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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 and permanent bans or terminations 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.

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.

SOURCE Investment Industry Regulatory Organization of Canada (IIROC) - General News

For further information:

Warren Funt
Vice President, Western Canada
    Elsa Renzella
Director, Enforcement Litigation

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