MONTRÉAL, Feb. 7, 2012 /CNW/ - A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has found that Stéphane Rail obstructed an investigation conducted by the Investment Dealers Association (IDA) (now IIROC), failed to use due diligence to learn and remain informed of the essential facts relative to his client and the person authorized on his client's account, and accepted instructions from an unauthorized person.
The Hearing Panel's Decision and Reasons dated December 12, 2011 is available at http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=D05C724CD12842B7B9D14A5EE73711C2&Language=en
Specifically, the Panel found that Mr. Rail committed the following:
|(a)||on December 8, 2005 and on July 13, 2006, during examinations held by IIROC staff, Mr. Rail violated IDA By-law 29.1 (now IIROC Rule 29.1) by obstructing an investigation conducted by the IDA (IIROC) when he lied about the existence and/or involvement of a person in his client's account;|
|(b)||between September 1995 and April 2001, Mr. Rail violated IDA Regulation 1300.1(a) (now IIROC Rule 1300.1(a)) by failing to use due diligence to learn and remain informed of the essential facts relative to his client, namely the fact that the person identified as being authorized on the account had been deceased since December 1994;|
|(c)||between September 1995 and March 2001, Mr. Rail violated IDA Regulation 200.1(i)(3) (now IIROC Rule 200.1(i)(3)) with respect to instructions on approximately 124 trades conducted in his client's account which originated from an unauthorized person.|
IIROC formally initiated the investigation into Mr. Rail's conduct in November 2009. The violations occurred while he was a Registered Representative at the Quebec City branch offices of TD Evergreen or Canaccord Capital Inc., both IIROC-regulated firms. Mr. Rail is no longer a registrant with an IIROC-regulated firm.
A separate hearing will be held to determine the penalties to be imposed on Mr. Rail, the date of which 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.
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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 (IDA) of Canada and Market Regulation Services Inc. (RS), 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.
For further information:
Vice President, Québec
Director, Public Affairs