In April 2013, the BCSC released one settlement agreement and notice of hearing, and IIROC released one decision and a settlement relating to BC residents. The MFDA did not issue any decisions, and a hearing panel declined to approve a settlement agreement.
Below is a summary of a few of the April 2013 enforcement cases.
Quantum admitted in a settlement agreement that it failed to address repeat deficiencies in the area of Know Your Client procedures, Policy and Procedures manual and Compliance Officer performance and oversight.
In 2005, BCSC staff identified several deficiencies during a compliance examination. Subsequent examinations in 2008 and 2010 found similar deficiencies. There was no evidence that the deficiencies negatively impacted Quantum’s clients and a 2011 examination found the company had corrected the deficiencies.
Quantum agreed, in the settlement agreement, to pay $50,000 and to engage a consultant (approved by BCSC staff in advance) to review Quantum’s ongoing response to the deficiencies on a quarterly basis for a period of one year.
An IIROC Hearing Panel fined Myatovic $500,000 and issued a permanent ban on approval in any capacity. The panel fined Lowe $100,000 and issued a three-year ban on registration in any capacity.
The panel imposed these sanctions after finding in an earlier July 2012 decision that Myatovic and Lowe failed in their role as gatekeepers by facilitating manipulative or suspicious trading activity in several client accounts.
An IIROC Hearing Panel accepted a settlement agreement between IIROC staff and Smith. Smith admitted that he engaged in personal financial dealings with his client without his firm’s knowledge.
Smith agreed, in the settlement agreement, to pay $50,000 and to pay costs of $5,000. In addition, Smith agreed to a four-year suspension of registration from IIROC in any capacity.
Access to more cases
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