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 Laurentian Bank Securities Inc.
Laurentian Bank Securities Inc. admitted that it failed to offer training to give its supervisors sufficient knowledge to adequately supervise the trading of leveraged Exchange-Traded Funds in retail client accounts.
Specifically, Laurentian Bank Securities Inc. admitted to the following violations:
|(a)||Between October 2008 and April 25, 2010, Laurentian Bank Securities failed to exercise adequate and effective supervision by not taking every measure to ensure that its supervisors fully understood the features and risks inherent in the leveraged Exchange-Traded Funds in the accounts of two retail clients, contrary to Part 3.A (1) of IIROC Dealer Member Rule 2500; and|
|(b)||Between October 2008 and April 25, 2010, Laurentian Bank Securities failed to use due diligence, by neglecting to offer training to ensure that its supervisors had full knowledge to adequately supervise the trading of leveraged Exchange-Traded Funds in its retail client accounts, contrary to Rule 18.3(b), Rule 38.2(b) and Part 3A (5) of Rule 2500 of the IIROC Dealer Member rules;|
Pursuant to the Settlement Agreement, Laurentian Bank Securities Inc. agreed to the following penalty:
|(a)||A fine of $140,000.|
Laurentian Bank Securities Inc. also agreed to pay costs in the amount of $10,000.
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 Laurentian Bank Securities'conduct in July 2011. Laurentian Bank Securitiesis an IIROC-regulated firm.
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
For further information:
Vice President, Québec
Director, Public Affairs