TORONTO, Oct. 2, 2012 /CNW/ - On Monday, September 24, 2012, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement between IIROC staff and Harry Richard Newman.
Specifically, Mr. Newman admitted that between June 2007 and April 2010 he engaged in excessive trading in an elderly client's account which was not within the bounds of good business practice and was unsuitable, contrary to IIROC Dealer Member Rules 1300.1(o) and (p) [IDA Regulations 1300.1(o) and (p) prior to June 1, 2008].
Pursuant to the Settlement Agreement, Mr. Newman agreed to the penalty of a permanent prohibition from approval for registration with IIROC. Mr. Newman also agreed to pay costs in the amount of $5,000. It is also significant that, separate from IIROC and prior to the Settlement Hearing, Mr. Newman personally paid $680,000 toward a settlement of the elderly investor's civil claim.
The Settlement Agreement is available at:
http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=D2765EF52E5C45FDA9DE83823F8B706D&Language=en and the Hearing Panel's reasons for decision will be made available at www.iiroc.ca.
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. Newman's conduct in November 2010. The conduct occurred when he was a Registered Representative with a sub-branch of the Toronto branch of Mackie Research Capital Corporation, an IIROC-regulated firm. Mr. Newman 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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