IIROC announces settlement with Richard Roy

MONTRÉAL, Feb. 15 /CNW/ - A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has accepted a Settlement Agreement, with sanctions, between IIROC staff and Richard Roy.

In the agreement, Mr. Roy admits that he failed in his know-your-client obligations and that he inappropriately followed trading instructions from an unauthorized third party.

Mr. Roy has agreed to a $20,000 fine, to pay $2,500 in costs and to a suspension from approval in any capacity for five years. If he is re-registered with an IIROC-regulated firm after the suspension, he has agreed to a permanent prohibition from acting in a management or supervisory capacity and to work under close supervision for six months.

Specifically, Mr. Roy admits that he:

  • Failed to use due diligence to ensure he learned all the essential facts relative to his clients, contrary to IIROC Rule 1300.1 (a) and 1300.1 (b); and
  • Accepted and followed instructions from an unauthorized third party, contrary to IIROC Rule 200.1(i)(3). This rule requires, in part, that before trading instructions on an account are accepted from someone other than the customer, a written trading authorization is required.

The violations occurred from January 2005 to June 2007 while Mr. Roy was a Registered Representative at the Montréal branch of Industrial Alliance Securities Inc., an IIROC-regulated firm. IIROC began the formal investigation into Mr. Roy's conduct on September 26, 2007. Mr. Roy is no longer a registrant 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

For further information:

Carmen Crépin
Vice President, Québec                                                                                 
Elsa Renzella
Director, Enforcement Litigation

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