TORONTO, June 24, 2013 /CNW/ - On June 10, 2013, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and Derek George Laidlaw Axford.
Mr. Axford admitted that he failed to use due diligence to ensure that investment recommendations were suitable for his clients and to learn and remain informed of the essential facts relative to orders accepted when his clients purchased certain inverse exchange-traded funds.
Specifically, Mr. Axford admitted to the following violations:
|(a)||From April 2010 to August 2011, he failed to use due diligence to ensure that investment recommendations were suitable for his clients, contrary to IIROC Dealer Member Rule 1300.1(q); and|
|(b)||From April 2010 to August 2011, he failed to use due diligence to learn and remain informed of the essential facts relative to orders accepted, when his clients purchased certain inverse exchange traded funds, contrary to IIROC Dealer Member Rule 1300.1(a).|
Pursuant to the Settlement Agreement, Mr. Axford agreed to the following penalty:
|(a)||A suspension from approval in any registered capacity with IIROC for a period of four months;|
|(b)||A fine of $30,000;|
|(c)||A requirement that Mr. Axford successfully complete the Conduct and Practices Handbook (CPH) course prior to seeking re-registration; and|
|(d)||A requirement that Mr. Axford be placed under close supervision for a period of six months upon re-approval.|
Mr. Axford also agreed to pay costs in the amount of $2,500.
The Hearing Panel's decision dated June 10, 2013 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. Axford's conduct in September 2011. The conduct occurred when he was a Registered Representative with a London, Ontario branch of RBC Dominion Securities, an IIROC-regulated firm. Mr. Axford is currently employed as a Registered Representative with the Komoka, Ontario branch of Worldsource Securities Inc., 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
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