CALGARY, Dec. 18, 2012 /CNW/ - On December 5, 2012, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement between IIROC staff and John Lloyd Hanna.
Mr. Hanna admitted that he failed to use due diligence to learn and remain informed of the essential facts relative to one client, and failed to use due diligence to ensure that recommendations were suitable for that client.
Specifically, Mr. Hanna admitted to the following violations:
a) Between April, 2006 and August, 2009, Mr. Hanna failed to use due diligence to learn and remain informed of the essential facts relative to his client, contrary to IIROC Rule 1300.1(a) [IDA Regulation 1300.1(a) prior to June 1, 2008];
b) Between April, 2006 and August, 2009, Mr. Hanna failed to use due diligence to ensure that recommendations were suitable for his client based on factors including the client's financial situation, investment knowledge, investment objectives and risk tolerance, contrary to IIROC Rule 1300.1(q) [IDA Regulation 1300.1(q) prior to June 1, 2008].
Pursuant to the Settlement Agreement, Mr. Hanna agreed to the following penalty:
a) Mr. Hanna agrees to pay a fine to IIROC in the sum of $30,000;
b) Mr. Hanna shall be suspended from registration with IIROC in any capacity for a period of 30 days commencing upon the acceptance of this Settlement Agreement;
c) Mr. Hanna shall be subject to a period of six months of close supervision commencing upon the expiry of the period of suspension; and
d) Mr. Hanna shall re-write and successfully complete the Conduct and Practices Handbook examination within 12 months of the acceptance of this Settlement Agreement.
Mr. Hanna also agreed to pay costs in the amount of $2,500.00.
The Settlement Agreement is available at:
and the 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 Mr. Hanna's conduct in December 2010. The conduct occurred when he was a Registered Representative with the Regina branch of Wellington West Capital Inc., an IIROC-regulated firm. Mr. Hanna is currently a Registered Representative at National Bank Financial Ltd.
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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