Enforcement Notice - IN THE MATTER OF Dundee Securities Corporation - Settlement Accepted
CALGARY, Dec. 13, 2013 /CNW/ - On December 4, 2013, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and Dundee Securities Corporation ("Dundee").
Dundee admitted that they failed to effectively exercise its supervisory responsibilities as its compliance officers approved account forms with objectives that were too risky for one client couple, and failed to make inquiries into the suitability of trades in the accounts of two client couples.
Specifically, Dundee admitted to the following violations:
|a)||Between approximately May 2006 and April 2008, Dundee failed to effectively exercise its supervisory responsibilities concerning the management of the accounts of clients, RH and JH, contrary to IDA By-Law 1300.2(a) (now known as IIROC Dealer Member Rule 1300.2(a)) and Policy No. 2 (now known as IIROC Dealer Member Rule 2500); and|
|b)||Between approximately August 2007 and April 2008, Dundee failed to effectively exercise its supervisory responsibilities concerning the management of the accounts of clients, JR and ER, contrary to IDA By-Law 1300.2(a) (now known as IIROC Dealer Member Rule 1300.2(a)) and Policy No. 2 (now known as IIROC Dealer Member Rule 2500).|
Pursuant to the Settlement Agreement, Dundee agreed to the following penalty:
|a)||Dundee shall pay a fine to IIROC in the sum of $110,000.|
Dundee also agreed to pay costs in the amount of $10,000.
The Settlement Agreement can be found at the following:
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 Dundee's conduct in July 2010. Dundee changed its name to DWM Securities Inc., which later amalgamated with Scotia Capital Inc. Scotia Capital Inc. 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