MONTREAL, Sept. 6, 2012 /CNW/ - Following a hearing on July 11, 2012, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement between IIROC staff and François Tremblay.
Mr. Tremblay admitted that he failed to use due diligence by neglecting to take reasonable means to inform himself of the features and risks inherent in leveraged Exchange-Traded Funds, so as to exercise adequate supervision of the accounts of retail clients of a Registered Representative under his supervision.
Specifically, Mr. Tremblay admitted to the following violations:
|(a)||Between October 2008 and April 25, 2010, the Respondent failed to use due diligence, contrary to Rule 1300.1 (a), (p) and (q) and to Part IV A of Rule 2500 of the IIROC Dealer Member Rules:|
|a.||By neglecting to ensure adequate supervision of the accounts of retail clients of a registered representative under his supervision;|
|b.||By neglecting to ensure that the recommendations made to two retail clients of a registered representative under his supervision, concerning leveraged Exchange-Traded Funds, were appropriate for these clients.|
|(b)||Between October 2008 and April 25, 2010, the Respondent failed to use due diligence by neglecting to take reasonable means to inform himself of the features and risks inherent in leveraged Exchange-Traded Funds, in order to acquire sufficient competence to adequately monitor orders for these products in the accounts of clients of a registered representative under his supervision, contrary to IIROC Dealer Member Rule 1300.1 (a).|
Pursuant to the Settlement Agreement, François Tremblay agreed to the following penalties:
|(a)||A fine of $22,000;|
|(b)||A 12-month ban on presenting an application for approval with IIROC in any capacity;|
|(c)||The obligation to pass the Branch Managers Course before presenting an application for approval with IIROC in order to hold a position as a supervisor of Approved Persons.|
Mr. Tremblay also agreed to pay costs in the amount of $3,000.
The Settlement Agreement and the Hearing Panel's decision dated August 16, 2012 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. Tremblay's conduct in April 2011. The violations occurred while Mr. Tremblay was Manager of the Montréal Branch of Laurentian Bank Securities Inc., an IIROC-regulated firm. Mr. Tremblay 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
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