VANCOUVER, June 1, 2012 /CNW/ - Jory Capital Inc. and Patrick Michael Cooney sought to appeal the decisions of IIROC Hearing Panels dated January 28, 2011, February 14, 2012, and April 11, 2012. On May 4, 2012, a consent order was issued by the Manitoba Securities Commission ordering, among other things, the following:
|1)||The registration of Jory be subject to the following terms and conditions:|
|(a)||by May 14, 2012, or such later date as IIROC may permit, Jory shall establish and maintain an independent Advisory Committee ("the Committee");|
|(b)||by May 14, 2012, or such later date as IIROC may permit, Jory shall engage the services of a qualified external compliance consultant (the "Monitor") acceptable to IIROC staff to conduct an independent review of Jory's compliance and supervision policies and procedures and to provide comprehensive recommendations for ongoing compliance practices; and|
|(c)||until an Ultimate Designated Person and a Chief Compliance Officer have been approved for Jory by IIROC, the Monitor shall, in conjunction with Jory's Operations Manager, perform the functions that would be performed by the UDP and CCO.|
|2)||The registration of Jory will be cancelled on the date upon which, among other things, one of the following occurs, or on such later date as IIROC staff may permit:|
|(a)||Jory fails to engage the Committee by May 14,2012;|
|(b)||Jory fails to maintain the Committee;|
|(c)||Jory ceases to have a Carrying Broker;|
|(d)||Jory's Risk Adjusted Capital is negative and is not restored to a positive value within five business days, or such later date as IIROC staff may permit; and|
|(e)||Jory fails to engage or ceases to have the services of a Monitor that is acceptable to IIROC staff.|
|3)||The Enhanced Business Restrictions which prohibited Jory from:|
|(a)||opening any new branch offices;|
|(b)||hiring any new Registered Representatives or investment representatives;|
|(c)||opening any new customer accounts; or|
|(d)||changing its inventory position in any material respect.|
|be forthwith removed upon:|
|(a)||Jory securing a capital injection of $200,000; and|
|(b)||Jory engaging a Monitor as set out above.|
|4)||The IIROC Hearing Panel's Penalty Decision dated January 28, 2011 be varied and ordered as follows:|
|(a)||Jory shall not pay a fine, but shall pay costs in the amount of $50,000;|
|(b)||Mr. Cooney shall pay a fine of $100,000 but shall not pay any costs; and|
|(c)||Mr. Cooney will be prohibited from being approved in any IIROC approval category with the exception of Registered Representative, Investment Representative, Executive and Director, or any equivalent registration categories under the Manitoba Securites Act, any of which can be held concurrently.|
The Manitoba Securities Commission's Notice of Hearing, dated April 23, 2012 is available at: http://www.msc.gov.mb.ca/legal_docs/investigation/hearings/jory.pdf.
The Manitoba Securities Commission's Order dated May 4, 2012 is available at:
The IIROC Hearing Panel's decision regarding penalty dated January 28, 2011 is available at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=1D36D46105334E908543BAFC1929F446&Language=en.
The IIROC Hearing Panel's decision regarding Enhanced Business Restrictions dated February 14, 2012 is available at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=1D55E4B5540646459555F10D2A4A3991&Language=en.
The IIROC Hearing Panel's decision regarding Enhanced Business Restrictions dated April 11, 2012 is available at:
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.
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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.