IIROC announces settlement with Clark Alexander Squires

TORONTO, Oct 6 /CNW/ - A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has approved a Settlement Agreement, including sanctions, between IIROC staff and Clark Alexander Squires.

In the September 21, 2010 agreement, Mr. Squires admitted that he failed to transact his business in a manner that was both open and fair when he made sell order recommendations based on information that was not generally available to other market participants. As part of the agreement, he agreed to pay a fine in the amount of $20,000 and costs of $5,000.

Specifically, Mr. Squires, a managing partner at Brant Securities Inc., admitted to conduct that violated Rule 2.1 of the Universal Market Integrity Rules when:

• On February 11, 2009, he failed to transact business openly and fairly and in accordance with just and equitable principles of trade when trading on a marketplace by entering sell orders for three clients in securities of Canadian Superior Energy Inc.

As a director of Canadian Superior, Mr. Squires learned certain corporate information that was not broadly disseminated. At a Canadian Superior board meeting, Mr. Squires became aware of legal advice that the information was “not material” for a press release, according to the agreement. Therefore, he believed he was not restricted from recommending sell orders of the company’s shares. “[Mr. Squires] took no further independent steps to determine whether trading … was appropriate and in accordance with just and equitable principles of trade in the circumstances,” says the agreement, which also states Mr. Squires did understand that the information could become material.

The share price fell sharply in value the day after Mr. Squires’ clients sold their shares. Brant cancelled the trades in Mr. Squires’ clients’ accounts and notified IIROC of the trading activity and cancellations that same day.

IIROC began the investigation into Mr. Squires’ conduct in February 2009. At the time of the violation, Mr. Squires was employed at Brant, an IIROC-regulated firm. He is still employed at Brant.

* * *

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.

For further information: