IIROC sanctions former exec over syndications

A former industry executive has been sanctioned by the Investment Industry Regulatory Organization of Canada (IIROC) in a settlement stemming from his handling of new issue allocations.

An IIROC hearing panel approved a settlement with the former head of BBS Securities Inc., Bardya Ziaian, who admitted to violating the self-regulatory organization’s rules between August and December 2013. Ziaian “failed to make bona fide offerings of new issues to public investors,” IIROC said.

According to the settlement, Ziaian violated IIROC rules when he submitted expressions of interest to underwriting syndicates for new issues that didn’t reflect genuine interest from investors.

“Although clients always received the securities that they requested during the relevant time period, most of the new issue securities were placed by [Ziaian] into his firm’s inventory accounts or accounts [he controlled],” it said.

As a result, the firm was able to engage in profitable trading with the new issue allocations it received.

“[Ziaian’s] firm also received significant benefit in the form of drawdown prices or selling concessions for the new issues, and as the sole shareholder, [Ziaian] benefitted indirectly from the selling concessions received by his firm,” the settlement said.

Under the settlement, Ziaian agreed to pay a fine of $150,000 and $35,000 in costs, and to an 18-month suspension from certain supervisory positions.

BBS was acquired by CI Financial Corp. in 2017.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.