MONTREAL, April 18 /CNW/ - The Investment Dealers Association of Canada
(IDA) announced today that a hearing will be held before a Hearing Panel,
appointed pursuant to By-law 20, in respect of discipline penalties which may
be imposed upon Jean-Louis Trudeau, at all material times, an Approved Person
employed at the Montréal branch office of MacDougall, MacDougall & MacTier
Inc., an IDA Member firm.
In its decision dated December 12, 2006, the Hearing Panel ruled that,
during the period between February 2003 and May 2004, Mr. Trudeau failed to
use due diligence to ensure that the acceptance of orders for the accounts of
four clients were within the bounds of good business practice, contrary to
Regulation 1300.1 (b).
Specifically, Mr. Trudeau failed in his role to protect the public
interest by executing trades that were indicative of unlawful or suspicious
behaviour without making any prior effort to determine whether insider trading
or the use of privileged information was involved.
The Hearing Panel also found Mr. Trudeau guilty of failing to use due
diligence to ensure that he learned the essential facts relative to four
clients and to every order or account accepted, contrary to Regulation
1300.1 (a). During the period between June 2001 and May 2004, while an
Approved Person at Thomson, Kernaghan & Co. Limited, a former Member of the
IDA, and MacDougall, MacDougall & MacTier Inc., Mr. Trudeau neglected to
identify the clients in accordance with IDA guidelines relative to the
proceeds of crime (money laundering) legislation and failed to communicate
with his clients to obtain the necessary information regarding their identity,
their assets and the ties that connected them.
The Hearing Panel found Mr. Trudeau not guilty of violating Regulation
1300.1 (a) and 1300.1 (b). The IDA had alleged that, during the period between
November 2002 and May 2004, he had failed to question his client or verify his
status as an insider.
At the request of the IDA, the Hearing Panel accepted the withdrawal of
the charge that Mr. Trudeau had neglected to report in writing to the IDA
within the prescribed 10 day period and, on multiple occasions, had failed to
report on various forms that he had been charged by the Montréal Exchange,
contrary to By-laws 18.4 and 29.1.
Mr. Trudeau is currently employed with an IDA Member firm.
The hearing is scheduled to commence at 10 a.m. on May 1, 2007, and will
continue on May 2, 2007, at the Barreau du Québec, 445 Saint-Laurent
Boulevard, Room 355, Montréal, Québec. The hearing is open to the public,
except as may be required for the protection of confidential matters. Copies
of the decision of the Hearing Panel will be made available.
The Investment Dealers Association of Canada (IDA) is the national
self-regulatory organization of the securities industry. The IDA's mission is
to protect investors, foster market integrity and enhance the efficiency and
competitiveness of the Canadian capital markets. The IDA enforces rules and
regulations regarding the sales, business and financial practices of its
Member firms and their approved persons. Investigating complaints and
disciplining Members and approved persons is part of the IDA's regulatory
For further information:
For further information: Carmen Crépin, Vice President, Québec, (514)
878-2854 or email@example.com; Jeffrey Kehoe, Director, Enforcement Litigation,
(416) 943-6996 or firstname.lastname@example.org