MONTREAL, Jan. 20, 2012 /CNW/ - A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has accepted a Settlement Agreement between IIROC staff and Melkon Melkonian. Mr. Melkonian admitted that he effected discretionary transactions in the accounts of two clients and excessively traded in these accounts without proper consideration of the client's best interest.
In the Settlement Agreement, Mr. Melkonian admitted to the following violations:
|(a)||From August 2004 to June 2009, he effected discretionary transactions in the joint accounts of two clients, without either of those accounts having been previously authorized by the firm as discretionary accounts, contrary to IDA Regulation 1300.4 and 1300.5 (now IIROC Rules 1300.4 and 1300.5); and|
|(b)||From 2005 to 2008 inclusive, he engaged in unsuitable and improper sales practices by excessively trading in the joint accounts of both clients without proper consideration of the clients' best interest, contrary to IDA By-law 29.1(ii) (now IIROC Rule 29.1).|
Pursuant to the Settlement Agreement, Mr. Melkonian agreed to the following penalty:
|(a)||A $30,000 fine ; and|
|(b)||His registration in any capacity will be suspended for a period of three years.|
Mr. Melkonian also agreed to pay costs in the amount of $5,000.
The Settlement Agreement and the Hearing Panel's Reasons for acceptance dated November 28, 2011 are available at http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=E3A2295F69A744FBB2B8813B7507858C&Language=en
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. Melkonian's conduct in September 2009. The violations occurred when he was a Registered Representative with the Montreal branch of Canaccord Capital Corporation, an IIROC-regulated firm. Mr. Melkonian 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.
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