VANCOUVER, July 20, 2012 /CNW/ - On June 25, 2012, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between the IIROC staff and John Skelton.
Mr. Skelton admitted between 2003 and 2008 he effected discretionary trades on behalf of his client's investment account and that some of these transactions were not suitable for the client.
Specifically, Mr. Skelton admitted to the following violations:
|(a)||Between July 2003 and December 2008, Mr. Skelton failed to use due diligence to ensure orders he placed for his client were suitable, contrary to IDA Regulation 1300.1(p) and IIROC Dealer Member Rule 1300.1(p); and|
|(b)||Between September 2003 and December 2008, Mr. Skelton effected discretionary trades on behalf of his client without having prior written authorization, and without the account having been designated and approved as a discretionary account by his employer Raymond James Ltd., contrary to IDA Regulations 1300.4 and 1300.5, and IIROC Dealer Member Rules 1300.4. and 1300.5.|
Pursuant to the Settlement Agreement, Mr. Skelton agreed to the following penalty:
|(a)||A $30,000 fine.|
Mr. Skelton also agreed to pay costs in the amount of $1,000.
The Settlement Agreement is available at http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=383A84D70E044C7A93101A25BA76DD25&Language=en and the Hearing 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. Skelton's conduct in April 2009. The conduct occurred when he was a Registered Representative with the Kelowna business location of Raymond James Ltd., an IIROC-regulated firm. Mr. Skelton is currently a Registered Representative with this firm.
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