TORONTO, July 12, 2012 /CNW/ - On June 18, 2012, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement between the IIROC staff and Portfolio Strategies Securities Inc.
Portfolio Strategies admitted it failed to designate a supervisor qualified to supervise options trading at the firm for approximately 11 months, and failed to supervise the activities of an individual working in the corporate finance department for approximately nine months.
Specifically, Portfolio Strategies admitted to the following violations:
|a)||From approximately December 2009 to November 2010 Portfolio Strategies failed to designate a supervisor qualified to supervise options trading at the firm, contrary to IIROC Rule 1900.2 (a); and|
|b)||From approximately March to December 2010 Portfolio Strategies failed to supervise the activities of an individual who was a consultant and agent of the firm, contrary to IIROC Rule 38.1.|
Pursuant to the Settlement Agreement, Portfolio Strategies agreed to the following penalty:
(a) a $40,000 fine;
Portfolio Strategies also agreed to pay costs in the amount of $3,500.
The Settlement Agreement is available at http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=F0108887D67C4A9AAFA127B84ACC8380&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 Portfolio Strategies' conduct in March 2011. The conduct occurred while it was an IIROC-regulated firm, and continues to be registered as such.
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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