MONTRÉAL, Dec. 17 /CNW/ - A Hearing Panel of the Investment Industry
Regulatory Organization of Canada (IIROC) has accepted a Settlement
Agreement between IIROC staff and Jean-Guy Ducharme.
In the agreement, Mr. Ducharme admits to making over-the-counter transactions for his
personal account without informing his firm. He also admits to failing
to ensure that certain investment recommendations were suitable to the
clients' investment objectives and risk tolerance. As part of the
agreement dated November 19, 2010, Mr. Ducharme agrees to a $15,000
Specifically, Mr. Ducharme admits to:
engaging in conduct unbecoming or detrimental to the public interest by
purchasing shares in two different public companies for his own
personal account without disclosing the proposed trades to his firm,
contrary to IIROC Rule 29.1;
failing to ensure that investment recommendations made to two clients
were consistent with the clients' investment objectives and risk
tolerance, contrary to IIROC Rules 29.1, 1300.1(a) and 1300.1(p);
making investment recommendations where he and other representatives at
his branch held shares from those companies in their personal accounts,
and he was or should have been aware that one of those representatives
had a privileged connection with insiders of those companies, who were
also clients of his firm. The panel found this conduct unbecoming or
detrimental to the public interest, contrary to IIROC Rule 29.1.
The violations occurred between 2004 and 2006 while Mr. Ducharme was a
Registered Representative at the Brossard Branch of Desjardins
Securities Inc., an IIROC-regulated firm. IIROC began the investigation
into Mr. Ducharme's conduct on March 25, 2008. Mr. Ducharme is no
longer registered with an IIROC-regulated firm.
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
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