TORONTO, Jan. 16, 2012 /CNW/ - A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement between IIROC staff and Matthew Beechey.
In the Settlement Agreement, Mr. Beechey admitted to the following violations:
Count 1: During 2005 and 2006, he did not exercise sufficient due diligence to ensure that he fully understood the complexities and risks of Global Credit Preferred Corp., contrary to IDA Regulation 1300.1(a) (now IIROC Dealer Member Rule 1300.1(a));
Count 2: During 2005 and 2006, he did not exercise sufficient due diligence to learn and remain informed of the essential facts relative to three clients, contrary to IDA Regulation 1300.1 (a) (now IIROC Dealer Member Rule 1300.1(a));
Count 3: During 2005 and 2006, he failed to make suitable investment recommendations for six clients, contrary to IDA Regulation 1300.1(q) (now IIROC Dealer Member Rule 1300.1(q)).
Pursuant to the Settlement Agreement, Mr. Beechey agreed to the following penalty:
(a) a fine of $20,000 for count 1;
(b) a fine of $15,000 for count 2;
(c) a fine of $15,000 for count 3; and
(d) disgorgement of commissions in the amount of $1,399.88.
Mr. Beechey also agreed to pay costs in the amount of $3,000.
The Settlement Agreement is available at http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=AEAEDA2D77A2448190C83827E511C715&Language=en. The panel's Decision and Reasons for acceptance of the agreement 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. Beechey's conduct in January 2008. The violations occurred when he was a Registered Representative with the Waterloo branch of TD Waterhouse Canada Inc., an IIROC-regulated firm. Mr. Beechey is currently registered with the Waterloo branch of CIBC World Markets Inc.
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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.
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