IIROC sets penalty against Magna Partners

A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has ordered Magna Partners Ltd. to pay a $100,000 fine and $10,000 in costs. The penalty follows an agreed statement of facts and violations in which Magna Partners admitted to two violations of best price obligation rules. The panel’s Decision and Reasons on […]

By Staff | November 16, 2010 | Last updated on November 16, 2010

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A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has ordered Magna Partners Ltd. to pay a $100,000 fine and $10,000 in costs.

The penalty follows an agreed statement of facts and violations in which Magna Partners admitted to two violations of best price obligation rules. The panel’s Decision and Reasons on Penalty are dated October 28, 2010 and available on the IIROC website.

Specifically, Magna admitted that between October 2008 and May 2010, while operating as an IIROC-regulated firm, the firm did not make reasonable efforts to have access to the following protected marketplaces: Alpha ATS, CNSX, Omega ATS and Chi-X Canada, contrary to Universal Market Integrity Rules (UMIR) 5.2. Magna further admitted that it did not have adequate policies and procedures in place to ensure reasonable efforts were made to execute orders at the best price, contrary to UMIR 7.1.

Separately, on November 1, 2010, Magna Partners filed a Request for a Hearing and Review to the Ontario Securities Commission seeking to review this same October 28, 2010 decision by the IIROC panel. For further information about the review hearing, please contact the Office of the Secretary of the Ontario Securities Commission.

IIROC began investigating the conduct of Magna Partners on July 13, 2009. Magna Partners Ltd. is currently an IIROC-regulated firm.

(11/16/10)