CALGARY, May 23, 2012 /CNW/ - On May 1, 2012, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement between IIROC staff and Daniel Lindsay Cuthbertson.
Mr. Cuthbertson admitted he parked shares, traded off-marketplace without approval and engaged in unauthorized trading.
Specifically, Mr. Cuthbertson admitted to the following violations:
|a)||Between September and December 2008, he executed seven unauthorized trades, contrary to Dealer Member Rule 29.1;|
|b)||Between September and November of 2008, he parked stocks purchased for a retail client in the firm's average price account and institutional accounts, and then misrepresented the true nature of those stock positions to his firm's Chief Compliance Officer, contrary to Dealer Member Rule 29.1; and|
|c)||On October 6, 2008, he executed an off-marketplace trade without approval from Regulation Services, and above the market price, contrary to Dealer Member Rule 29.1.|
Pursuant to the Settlement Agreement, Mr. Cuthbertson agreed to the following penalty:
|a)||A $35,000 fine;|
|b)||A period of suspension from registration in any capacity with IIROC for 18 months;|
|c)||Successful completion of the Conduct and Practices Handbook examination; and|
|d)||Upon re-approval in any registered capacity with IIROC, a six-month period of close supervision.|
Mr. Cuthbertson also agreed to pay costs in the amount of $5,000.00.
The agreement and 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.
IIROC formally initiated the investigation into Mr. Cuthbertson's conduct in April 2009. The conduct occurred when he was a Registered Representative with the Calgary branch of J.F. Mackie and Company Ltd., an IIROC-regulated firm. Mr. Cuthbertson 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.
For further information:
Vice President Western Canada
Director, Public Affairs