Enforcement Notice Decision - IN THE MATTER OF Sheldon Don Birkeland - Settlement Accepted

May 29, 2015, 15:20 ET from Investment Industry Regulatory Organization of Canada (IIROC) - General News

CALGARY, May 29, 2015 /CNW/ - On May 7, 2015, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and Sheldon Don Birkeland.

Mr. Birkeland admitted that he failed to know his client and made unsuitable recommendations.

Specifically, Mr. Birkeland admitted to the following violations:


Between January 2007 and January 2011, Mr. Birkeland failed to use due diligence to learn and remain informed of the essential facts relative to his client, contrary to Dealer Member Rule 1300.1(a) (Investment Dealer Association by-law 1300.1(a) prior to June 1, 2008); and


Between January 2007 and January 2011, Mr. Birkeland made unsuitable recommendations for the account of his client, contrary to Dealer Member Rule 1300.1(q) (Investment Dealer Association by-law 1300.1(q) prior to June 1, 2008).

Pursuant to the Settlement Agreement, Mr. Birkeland agreed to the following penalties:


A fine in the sum of $45,000;


A requirement to successfully rewrite the Conduct and Practices Handbook exam; and


A period of six months of close supervision, with all supervision reports to be filed with IIROC's Registration Department.

Mr. Birkeland also agreed to pay costs in the amount of $5,000.

The Settlement Agreement dated May 7, 2015, is available at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=B8EA17B69FDB4EA4B83CCB161F1506CF&Language=en.

The Hearing Panel's decision is available at http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=65043E6DFED145A28E7FB216FF16487E&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. Birkeland's conduct in May 2013.  The conduct occurred while he was a Registered Representative with the Regina, Saskatchewan branch of Union Securities Ltd., an IIROC-regulated firm. Mr. Birkeland is currently a Registered Representative with the Regina, Saskatchewan branch of Mackie Research Capital Corporation.

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