TORONTO, June 18, 2012 /CNW/ - An appearance has been scheduled before a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) for the purpose of setting a date for the disciplinary hearing in the matter of John Edward Brodie.
The discipline hearing concerns allegations Mr. Brodie recommended unsuitable investments that were heavily concentrated in the energy/resource sectors, made unsuitable use of leverage for two of his clients, engaged in discretionary trading in their accounts, and made personal payments to them without his firm's knowledge or authorization.
Set Date Appearance: Friday, June 22, 2012, 10am (Atlantic Daylight Time)
The set date appearance will be conducted via conference call, and is accessible to the public, unless the Hearing Panel orders otherwise.
Interested members of the public may obtain the conference dial-in number from IIROC's National Hearing Coordinator by emailing [email protected]. The date for the discipline hearing 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.
Specifically, the allegations are:
- Between 2005 and 2009, Mr. Brodie made investment recommendations that were unsuitable for two clients, contrary to IIROC Dealer Member Rule 1300.1(q) (IDA Regulations 1300.1(q) prior to June 1, 2008).
- Between 2005 and 2009, Mr. Brodie made discretionary trades in the accounts of three clients without first having the accounts approved and accepted as discretionary accounts, contrary to IIROC Dealer Member Rule 1300.4 (IDA Regulations 1300.4 prior to June 1, 2008).
- Between May 2008 and June 2009, Mr. Brodie personally compensated two clients for losses in their accounts without the knowledge or approval of his Member firm, contrary to IIROC Dealer Member Rule 29.1 (IDA By-law 29.1 prior to June 1, 2008).
IIROC formally initiated the investigation into Mr. Brodie's conduct in March 2011. The alleged violations occurred when he was a Registered Representative with the Halifax branch of Canaccord Capital Corp (now Canaccord Genuity Corp.), an IIROC-regulated firm. Mr. Brodie is currently a Registered Representative with the Dartmouth branch of Global Maxfin Capital Inc., an IIROC-regulated firm.
The Notice of Hearing, which sets out the allegations, is available at http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=AF30674E05864062B317CD8BBFBB5E21&Language=en.
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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.