VANCOUVER, Feb. 22 /CNW/ - On Tuesday, February 9, 2010, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement between IIROC Staff and Darcy Alan Higgs (the Respondent). Pursuant to the Settlement Agreement, the Respondent admitted that:
(a) Between 2003 and 2005, the Respondent, at all material times a
Registered Representative (RR) at Haywood Securities Inc.
(Haywood), a Member firm, failed to properly perform his role as
gatekeeper to the capital markets and acted contrary to
Rule 1300.1(a) (then Regulation 1300.1(a)) by failing to use due
diligence to learn and remain informed of the essential facts
relative to the transactions of a particular issuer in a group of
client accounts; and
(b) Between 2003 and 2005, the Respondent, at all material times an RR
at Haywood, a Member firm, effected trades in the accounts of
clients based on the instructions of a third party without the
existence of a duly executed trading authorization, contrary to
Rule 200.1(i)(3) (then Regulation 200.1(i)(3)).
Pursuant to the Settlement Agreement, the Hearing Panel imposed the following penalty against the Respondent:
(a) A global payment totalling $40,000, which comprises both a fine
and a portion of Staff's costs of this proceeding;
(b) A suspension of registration in all capacities for a period of
(c) The 15-month suspension commenced on May 1, 2009, and will end on
July 31, 2010, as the Respondent resigned from his position in the
industry on May 1, 2009, in anticipation of the Notice of Hearing
being issued in this matter.
IIROC formally initiated the investigation into the Respondent's conduct in May 2005. The alleged violations occurred when the Respondent was an RR with the 400 Burrard Street Branch of Haywood. The Respondent is no longer registered in any capacity with an IIROC-regulated firm.
The Hearing Panel issued its Reasons and Decision on February 11, 2010. The Settlement Agreement and the Hearing Panel's Decision and Reasons are available at www.iiroc.ca.
As a result of the acceptance of the Settlement Agreement by the Hearing Panel, it is no longer necessary to hold the hearing of this matter that was scheduled to commence on April 14, 2010.
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: For further information: Warren Funt, Vice President, Western Canada, (604) 331-4750, email@example.com; Jeff Kehoe, Director, Enforcement, (416) 943-6996, firstname.lastname@example.org