Briefly: “IIROC bans former iForum broker” and more news

A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has accepted a settlement agreement between IIROC staff and Yves Tardif which includes a permanent ban against Mr. Tardif on registration with an IIROC-regulated firm.

In the agreement, Mr. Tardif admitted to conduct that violated the By-laws of the Investment Dealers Association (now IIROC rules) by:

(a) Accepting orders for securities which, as a Registered Representative limited to trading in mutual funds, he was not registered to accept, contrary to IDA By-law 18.7 (now IIROC Rule 18.7) and 29.1 (now IIROC Rule 29.1);

(b) Charging fees to clients without his firm’s knowledge or authorization, contrary to IDA By-law 18.15 (now IIROC Rule 18.15);

(c) Without the knowledge or authorization of his employer, distributing letters to his clients that contained false, misleading and incomplete information, contrary to IDA By-law 29.7(1)(a) (now IIROC Rule 29.7 (1)(a));

(d) Sending clients consolidated portfolio statements that do not meet the Association’s (now IIROC’s) standards, contrary to IDA By-law 29.1 (now IIROC Rule 29.1);

(e) Preparing and sending consolidated portfolio statements to 17 clients which contained false and misleading information about the clients’ investments, contrary to IDA By-law 29.1 (now IIROC Rule 29.1).

“The actions taken by the Respondent caused his clients serious harm,” the panel said in its decision. It noted that based on the same facts Mr. Tardif has already been ordered to pay fines of $453,000 following proceedings involving the Autorité des marchés financiers for offenses under the Securities Act.

IIROC began its investigation into Mr. Tardif’s conduct on November 24, 2005. The violations occurred while Mr. Tardif was a Registered Representative (mutual funds) at the Varennes, Québec branch of iForum Securities Inc., a firm formerly regulated by IIROC. Mr. Tardif has not been employed with an IIROC-regulated firm since December 1, 2005.

The Hearing Panel issued its Decision and Reasons on August 6, 2010. The Settlement Agreement and the Hearing Panel’s Decision and Reasons are available here.

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.

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Canadian banks safest in North America

The Royal Bank of Canada is the safest bank in North America, according to a recent survey by Global Finance. The publication’s 2010 survey ranks the top 50 safest banks in the world, with RBC taking the 10th place spot overall.

France’s Caisse des Depots et Consignations was named the world’s safest bank, with the top spots rounded out by four German banks, two from the Netherlands and one Swiss bank.

Toronto-Dominion Bank was the second highest ranking Canadian bank, at 15th overall, which was good enough to make it second safest in North America. Scotiabank was third safest on the continent, and 22nd overall, while Caisse centrale Desjardins was fourth on the continent (25th overall).

“Having sound management policies has been the backbone of our business for 110 years,” said Monique F. Leroux, chair of the board, president and CEO of Desjardins Group. “We also pride ourselves for being one of the best capitalized financial institutions in Canada.”

BMO Financial Group ranked 36th overall (sixth in North America), just ahead of 37th ranked CIBC (seventh in North America).

The top ranked U.S. bank was BNY Mellon, at 30th overall.

– Steven Lamb

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Consumers expect home prices to decline: RBC

The faith U.S. consumers have in the housing market has been shattered. According to the monthly RBC Consumer Outlook Index, 40% of U.S. consumers expect the sale prices of homes in their neighbourhoods to decrease over the next year.

Last month, 31% believed that to be true.

Only one-quarter of Americans expect the sale prices of houses in their neighbourhood to increase in the next 12 months, while 59% say they think the construction sector is financially weaker than it was a year ago. Only 14% said it is stronger.

Consumer confidence as measured by the RBC Consumer Outlook Index sank to its lowest level in six months, dropping to 45.9, compared to 63.9 in August.

The plunge in confidence is being driven by falling expectations for the economy and fears about job security. Nearly one-third of Americans are worried about losing their jobs. But Americans though are optimistic about their own financial outlook; 27% feel their personal financial situation will be stronger in six months than it is currently, compared to 21% who feel they will be worse off six months from now.

“As long as Americans are worried about their jobs, consumers’ outlooks will remain volatile,” said Marc Harris, co-head of global research at RBC Capital Markets. “Despite assurances that the Federal Reserve will intervene if necessary to support the economy, consumers continue to be wary about the direction of the economy and the country more generally. Until they see concrete evidence of a solid, long-term rebound, consumers will likely remain jittery.”

– John Powell

(09/02/10)