Enforcement Notice - Decision - IN THE MATTER of Paul Milot - Settlement Accepted

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Investment Industry Regulatory Organization of Canada (IIROC) - General News

Dec 08, 2014, 13:20 ET

MONTRÉAL, Dec. 8, 2014 /CNW/ - On November 13, 2014, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and Paul Milot.

Mr. Milot admitted to having failed to use due diligence to obtain sufficient knowledge of the features and risks inherent in leveraged Exchange-Traded Funds (ETFs) before recommending their purchase to one of his clients and failed to ensure that his trade recommendations were suitable for this client.

Specifically, Mr. Milot admitted to the following violations:

(a)	Between September 2007 and December 2009, he failed to use due diligence to obtain sufficient knowledge of the features and risks inherent in leveraged Exchange-Traded Funds (ETFs) before recommending their purchase to his client, contrary to IIROC Dealer Member Rule 1300.1(a) (Regulation 1300.1(a) of the IDA prior to June 2008); and

(b)	Between September 2007 and December 2009, he failed to use due diligence to ensure that his recommendations to buy, sell and/or hold securities were suitable for his client, contrary to IIROC Dealer Member Rule 1300.1(q) (Regulation 1300.1(q) of the IDA prior to June 1, 2008).

Under the terms of the Settlement Agreement, Mr. Milot accepted the following penalties:

a)	An aggregate fine in the amount of $20,000;

b)	Six months of close supervision; and

c)	Successful completion of the Conduct and Practices Handbook Course within one year following the decision to be rendered in the matter of this settlement agreement.

Mr. Milot also agreed to pay IIROC costs in the amount of $2,500.

The Hearing Panel's decision dated November 13, 2014 and the Settlement Agreement is available at:

http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=55D710756D6D4B68AA6900E50C378CA4&Language=en.

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. Milot's conduct in January 2013. The violations occurred while Mr. Milot was a registered representative at the Montréal branch of Industrial Alliance Securities Inc., an IIROC-regulated firm. Mr. Milot is still within the industry in a registered capacity at the Varennes sub-branch of Industrial Alliance Securities Inc.

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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