VANCOUVER, March 23, 2012 /CNW/ - A hearing has been scheduled before a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC), in the matter of Wellington West Capital Inc. (now National Bank Financial Inc.) and Daniel McDonald.
The hearing concerns allegations that Wellington West Capital Inc. sold Opti Canada Inc. shares to clients at prices higher than those available on the market, and that Wellington and Mr. McDonald failed to make reasonable inquiries regarding the purchase of Opti shares and the subsequent allocation of these shares to clients.
The hearing is open to the public, unless the panel orders otherwise. The decision of the panel 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.
|Hearing Date:||May 7-11, 2012 at 10:00 a.m.|
|| Delta Winnipeg
350 St. Mary Avenue
Specifically, the allegations are:
|(a)||In March 2006, Wellington sold Opti shares to clients at prices higher than those available on the market, contrary to IDA By-law 29.1 (currently, IIROC Dealer Member Rule 29.1).|
|(b)||Wellington failed to make reasonable inquiries regarding the March 2006 purchase of Opti shares and the subsequent allocation of these shares to clients, contrary to IDA By-laws 1300.2 and/or 29.1 (currently, IIROC Dealer Member Rules 1300.2 and 29.1).|
|(c)||Mr. McDonald failed to properly carry out his responsibilities as Wellington's Ultimate Designated Person and Chief Compliance Officer, namely he failed to make reasonable inquiries regarding the March 2006 purchase of Opti shares and the subsequent allocation of these shares to clients, contrary to IDA By-laws 1300.2 and/or 29.1 (currently, IIROC Dealer Member Ruled 1300.2 and 29.1).|
IIROC formally initiated the investigation into this matter in 2010. The allegations occurred when Mr. McDonald was Wellington's Chief Compliance Officer and Ultimate Designated Person. Mr. McDonald is no longer registered with an IIROC-regulated firm.
The Notice of Hearing which sets out the allegations is available at
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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.
For further information:
Vice President, Western Canada
Director, Public Affairs