IIROC settles with All Group Financial Services

A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has accepted a Settlement Agreement between IIROC staff and All Group Financial Services Inc.

In the agreement, All Group Financial Services Inc. admits that it failed to maintain Risk-Adjusted Capital above zero, and that it reduced its capital by redeeming shares without prior consent.

In doing so, All Group Financial Services accepts a penalty which includes a $35,000 fine and $2,000 in costs.

Specifically, All Group admits that:

• Between April 22, 2009 and May 19, 2009, and during December 2009, the firm failed to maintain its Risk-Adjusted Capital at a level greater than zero, contrary to IIROC Rule 17.1.
• During July and August 2009, while in an Early Warning Category, All Group reduced its capital by redeeming shares without obtaining prior consent from IIROC, contrary to IIROC Rule 30.3 (iv) (1).

IIROC formally began the investigation into the conduct of All Group, an IIROC-regulated firm, in June 2009.

Staff

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