CALGARY, Nov. 13, 2012 /CNW/ - On November 1, 2012, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and Wellington West Capital Inc. (Wellington West) and Lesley Walters-Sagher.
Wellington West and Ms. Walters-Sagher admitted that they failed to adequately understand certain leveraged exchange traded funds and thus were not able to properly supervise trading in those funds.
Specifically, Wellington West and Ms. Walters-Sagher admitted to the following violation(s) from January 2009 to June 2009:
|(a)||Each did not use due diligence to learn and remain informed of the essential facts relative to the orders for certain leveraged exchange traded funds accepted, contrary to Dealer Member Rule 1300.1(a); and|
|(b)||They did not adequately supervise Wellington West Registered Representatives when they recommended certain leveraged exchange traded funds to their clients, contrary to Dealer Member Rule 2500.|
Pursuant to the Settlement Agreement, Wellington West and Ms. Walters-Sagher agreed to the following penalties:
|(a)||Wellington West shall pay a fine of $175,000; and|
|(b)||Ms. Walters-Sagher shall pay a fine of $15,000.|
Wellington West also agreed to pay costs in the amount of $10,000.
The Settlement Agreement is available at
http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=566F6ABA6F604879A507E8658D0B474A&Language=en and the Hearing Panel's reasons for decision 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 Wellington West's and Ms. Walters-Sagher's conduct in December 2010. The conduct occurred when Wellington West was an IIROC-regulated firm and Ms. Walters-Sagher was a Branch Manager with the firm. Wellington West was acquired by National Bank Financial Ltd., another IIROC Dealer Member, in July 2011 and Ms. Walters-Sagher is currently a registrant with National Bank Financial Ltd.
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, Western Canada
Director, Public Affairs