TORONTO, June 18, 2013 /CNW/ - Following a disciplinary hearing held on May 7, 2013, in Toronto, Ontario, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) found that Craig Hodge engaged in outside business activities without the knowledge of his firm and that he offered to compensate a client.
The Hearing Panel's decision is available at:
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.
Specifically, the Hearing Panel found that Mr. Hodge committed the following violations:
|(a)||Count 1: From January 2003 to November 2009, while a Registered Representative and Branch Manager at Assante Capital Management Ltd., Mr. Hodge engaged in outside business activities without the prior knowledge or consent of his Member firm, thereby engaging in conduct unbecoming or detrimental to the public interest, contrary to IIROC Dealer Member Rule 29.1 (IDA By law 29.1 prior to June 1, 2008);|
|(b)||Count 2: From December 2009 to April 2011, while a Registered Representative and Supervisor at IPC Securities Corporation, Mr. Hodge engaged in outside business activities without the prior knowledge or consent of his Member firm, thereby engaging in conduct unbecoming or detrimental to the public interest, contrary to IIROC Dealer Member Rule 29.1; and|
|(c)||Count 3: In 2008 Mr. Hodge offered compensation to his client, thereby engaging in conduct unbecoming or detrimental to the public interest, contrary to IIROC Dealer Member Rule 29.1 (IDA By law 29.1 prior to June 1, 2008).|
The Hearing Panel imposed the following penalty on Mr. Hodge:
|(a)||A fine of $45,000 with respect to Count 1;|
|(b)||A fine of $30,000 with respect to Count 2;|
|(c)||A fine of $10,000 with respect to Count 3;|
|(d)||A suspension from registration with IIROC in all capacities for one year;|
|(e)||A 12-month period of strict supervision, upon any return to the industry; and|
|(f)||To rewrite the Conduct and Practices Handbook examination, upon any return to the industry.|
Mr. Hodge is also required to pay costs in the amount of $5,000.
IIROC formally initiated the investigation into Mr. Hodge's conduct in February 2012. The violations occurred when he was a Registered Representative and Branch Manager with Assante Capital Management Ltd. and with IPC Securities Corporation, both IIROC-regulated firms. Mr. Hodge is no longer a registrant with 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.
SOURCE: Investment Industry Regulatory Organization of Canada (IIROC) - General News
For further information:
Acting Vice President, Enforcement
Senior Media and Public Affairs Specialist