Enforcement Notice - Decision - IN THE MATTER OF RBC Dominion Securities - Settlement Accepted
TORONTO, June 24, 2014 /CNW/ - On June 10, 2014, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC), accepted a Settlement Agreement, with sanctions, between IIROC staff and RBC Dominion Securities ("RBC DS").
RBC DS admitted that it failed to supervise one of its registered representatives.
Specifically, RBC DS admitted to the following violation:
(a) From April 2010 to August 2011, in the manner described in the Settlement Agreement, RBC DS failed to adequately supervise a registered representative ("RR") and certain of his client accounts when the RR recommended certain inverse exchange-traded funds to clients, contrary to IIROC Dealer Member Rule 2500.
Pursuant to the Settlement Agreement, RBC DS agreed to the following penalty:
(a) A fine of $90,000.
RBC DS also agreed to pay costs in the amount of $2,500.
The Settlement Agreement and the Hearing Panel's 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 RBC DS' conduct in April 2013. The conduct occurred at RBC DS' head office in Toronto, Ontario. RBC DS is an IIROC-regulated firm.
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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.
SOURCE Investment Industry Regulatory Organization of Canada (IIROC) - General News