Briefly: “IIROC sets date for Wells penalty hearing” and more news

A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has scheduled a hearing to determine the appropriate penalty in the matter of Dale Richard Wells.

This hearing follows the panel’s decision dated October 27, 2010, which found that Mr. Wells conducted his business in a manner contrary to IIROC rules by providing advice in securities when he was not properly registered to conduct business of that nature. The details of the decision are provided in a news release issued on November 10, 2010.

Hearing Date: 10:00 am, February 1, 2011 Location: Room TELUS 104, Calgary TELUS Convention Centre 120-9 Avenue SE, Calgary

The penalty hearing is open to the public, unless the panel orders otherwise. The decision and reasons on penalty will be made available to the public at www.iiroc.ca.

The panel found that Mr. Wells committed a violation by entering into an arrangement to supply a financial services company with his own computer-generated research that recommended buy and sell opportunities related to mutual funds in return for a fee, and that this information was used regularly by that firm to make trades in an investment fund. In doing so, Mr. Wells acted as an advisor within the meaning of the Alberta Securities Act without being registered as such, contrary to IIROC Rule 29.1.

IIROC began the investigation into Mr. Wells’ conduct in March 2008. The violations occurred from February 2006 to July 2008, while Mr. Wells was a Registered Representative with the Lloydminster, Alberta branch of First Financial Securities Inc., an IIROC-regulated firm. Mr. Wells is still a Registered Representative with that firm.

– Staff

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IIROC sets hearing for National Bank Financial

A hearing has been scheduled before a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) to consider whether the panel should accept a Settlement Agreement between IIROC staff and National Bank Financial Inc. (NBF).

The agreement concerns allegations that NBF violated the Universal Market Integrity Rules (UMIR) by failing to meet its trading supervision obligations and audit trail requirements.

The hearing is not open to the public, but will become open in the event the panel accepts the agreement. If the agreement is accepted, the panel’s decision and reasons will be made available at www.iiroc.ca.

Hearing Date: 1 p.m., December 6, 2010 Location: 5 Place Ville Marie, Suite 1550, Montréal, Québec

Specifically, it is alleged that National Bank Financial Inc. violated UMIR by:

(i) Failing to meet its trading supervision obligations, contrary to UMIR 7.1 and Policy 7.1, particularly with regard to the trading activity of Paul Clarke and Todd O’Reilly ,both of whom are alleged to have failed to transact business openly and fairly and in accordance with just principles of trade.

(ii) Failing on receipt or origination of certain orders to record specific information relating to the orders as required by Part 11 of the Trading Rules (National Instrument 23-101) contrary to UMIR 10.11(1).

The alleged violations occurred between April 2006 and June 2007. Market Regulation Services (now part of IIROC) began its formal investigation into NBF’s conduct on December 5, 2007. NBF is currently an IIROC-regulated firm.

– Staff

• • •

IIROC opens hearings for Clarke, O’Reilly

A hearing has been scheduled before a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) to consider whether the panel should accept settlement agreements between IIROC staff and Paul Clarke and Todd O’Reilly.

The agreements concern allegations that Mr. Clarke and Mr. O’Reilly failed to transact business openly and fairly, and in accordance with just and equitable principles of trade, by failing to meet their audit trail requirements under the Universal Market Integrity Rules (UMIR).

The hearing will not be open to the public, but will become open in the event the panel accepts the agreements. If the agreements are accepted, the panel’s decision and reasons, together with the settlement agreements will be made available at www.iiroc.ca.

Hearing Date: 1 p.m., December 6, 2010 Location: 5 Place Ville Marie, Suite 1550, Montréal, Québec

Specifically, it is alleged that Mr. Clarke and Mr. Reilly each violated UMIR by:

(i) Failing to record client account numbers or identifiers upon receipt of client orders and delaying timely allocation of trades to client accounts, resulting in the ability to effect improper post-execution allocation of trades and grant preferential treatment to certain clients. In doing so, both individuals failed to transact business openly and fairly and in accordance with just and equitable principles of trade, contrary to UMIR 2.1 and UMIR Policy 2.1, and

(ii) Caused contraventions of UMIR 10.11(1) by failing, on receipt or origination of certain orders, to record specific information relating to the orders as required by Part 11 of the Trading Rules (National Instrument 23-101), and for which each individual was liable pursuant to UMIR 10.3(4).

The alleged violations occurred between April 2006 and June 2007. During this period, Mr. Clarke was a Registered Representative and Mr. O’Reilly was an Investment Representative at National Bank Financial Inc., an IIROC-regulated firm. IIROC began its formal investigation into Mr. Clarke’s conduct on June 17, 2008 and into Mr. O’Reilly’s conduct on June 24, 2008. Mr. Clarke and Mr. O’Reilly are currently registered with National Bank Financial.

– Staff

(11/26/10)