VANCOUVER, April 17, 2012 /CNW/ - On March 28, 2012, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement between the IIROC staff and Paul Laverne Johnson.
Mr. Johnson admitted he relied upon a Registered Representative to such a degree that he failed to adequately supervise the account activity of one of the representative's clients.
Specifically, Mr. Johnson admitted to the following violation:
(a) From or about June 2003 to December 2008, Mr. Johnson failed to adequately supervise the account activities of a client of a Registered Representative to ensure the recommendations made were appropriate for the client, contrary to Association Regulation 1300.2 & Policy No. 2 and IIROC Rules 1300.2 & 2500.
Pursuant to the Settlement Agreement, Mr. Johnson agreed to the following penalty:
(a) a $20,000 fine.
Mr. Johnson also agreed to pay costs in the amount of $1,000.
The Settlement Agreement and the panel's decision and reasons are 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. Johnson's conduct in May 2009. The conduct occurred while he was a Branch Manager with the Kelowna branch of Raymond James Ltd., an IIROC-regulated firm. Mr. Johnson is still a registrant with the same branch in the capacity of a Registered Representative and no longer as a Branch Manager.
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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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