VANCOUVER, July 9, 2012 /CNW/ - On June 25, 2012, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement between IIROC staff and Wellington West Capital Inc. (now National Bank Financial Inc.).
Wellington admitted in March 2006 it failed to properly process and price the sale of Opti Canada Inc. shares to clients, and failed to make all reasonable inquiries into a Registered Representative's conduct in relation to the purchase of the Opti shares and the subsequent allocation of such shares to clients.
Specifically, Wellington admitted to the following violations:
|a)||In March 2006, it failed to properly process and price the sale of Opti shares to clients, contrary to IDA By-law 29.1 (IIROC Dealer Member Rule 29.1); and|
|b)||It failed to make all reasonable inquiries into a Registered Representative's conduct in relation to the March 2006 purchase of Opti shares and the subsequent allocation of such shares to clients, contrary to IDA By-law 29.1 (IIROC Dealer Member Rule 29.1).|
Pursuant to the Settlement Agreement, Wellington agreed to the following penalty:
|(a)||a $60,000 fine.|
Wellington also agreed to pay costs in the amount of $5,000.
The Settlement Agreement and the Hearing Panel's decision dated June 28, 2012 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's conduct in November 2010.
* * *
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.
For further information:
Vice President, Western Canada
Director, Public Affairs