TORONTO, Aug. 27, 2013 /CNW/ - On August 13, 2013, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and Donald Alexander Kochan.
Mr. Kochan admitted that he failed to use due diligence to ensure that the acceptance of any order from a client was suitable and that he engaged in unauthorized trading.
Specifically, Mr. Kochan admitted to the following violation(s):
|(a)||Between March 2004 and December 2010, Mr. Kochan failed to use due diligence to ensure that the acceptance of any order from a client was suitable for that client based on factors including the client's financial situation, investment knowledge, investment objectives and risk tolerance, contrary to IDA Regulation 1300.1(a) and IIROC Rule 1300.1(p); and|
|(b)||Between January 2007 and December 2010, Mr. Kochan engaged in unauthorized trading for three clients, and thereby engaged in conduct unbecoming contrary to IDA By-law 29.1 and IIROC Rule 29.1.|
Pursuant to the Settlement Agreement, Mr. Kochan agreed to the following penalties:
|(a)||A fine in the amount of $50,000; and|
|(b)||Disgorgement of commissions of $13,000.|
Mr. Kochan also agreed to pay costs in the amount of $2,500.
The Settlement Agreement is available at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=41E491E2000747A8BE4FBCF20C052998&Language=en and the Hearing Panel's decision dated August 13, 2013, 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. Kochan's conduct in September 2010. The violations occurred when he was a Registered Representative with the Cambridge, Ontario branch of DWM Securities Inc., an IIROC-regulated firm. Mr. Kochan is currently a Registered Representative with the Guelph Branch of National Bank Financial Inc., 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