TORONTO, April 13, 2012 /CNW/ - On April 3, 2012, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement between IIROC staff and BMO Nesbitt Burns Inc.
BMO Nesbitt Burns admitted it contravened Universal Market Integrity Rule (UMIR) 7.1 and Policy 7.1 by failing to adopt adequate policies, procedures and a supervision system sufficient to manage the risks associated with its trading activities to prevent the submission of erroneous orders, which resulted in the entry of an erroneous order by one of its traders to the TSX Market-on-Close Facility on October 13, 2010.
Pursuant to the Settlement Agreement, BMO Nesbitt Burns agreed to pay a $50,000 fine to IIROC. BMO Nesbitt Burns also agreed to pay costs in the amount of $5,000.
The Settlement Agreement is available at
The panel's decision will be made available at www.iiroc.ca.
Documents related to ongoing IIROC enforcement proceedings - including Reasons and Decisions of Hearing Panels - are posted on the IIROC website as they become available. Click here to search and access all IIROC enforcement documents
IIROC formally initiated the investigation into BMO Nesbitt Burns' conduct in April 2011. BMO Nesbitt Burns is currently an IIROC-regulated firm.
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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.
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, permanent bars, expulsion from membership, or termination of rights and privileges 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.
For further information:
Vice President, Enforcement
Director, Public Affairs