IIROC settles with National Bank Financial

A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has accepted a settlement agreement, which includes sanctions, between IIROC staff and National Bank Financial Inc.

In the agreement, NBF admits to violating the Universal Market Integrity Rules (UMIR) by failing to meet its trading supervision obligations and audit trail requirements.

National Bank Financial has agreed to pay a $250,000 fine and $30,000 in costs.

Specifically, NBF violated UMIR by:

• 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.
• Failing to record audit trail requirements such as client account number and order price and/or quantity, as required by Part 11 of the Trading Rules (National Instrument 23-101) contrary to UMIR 10.11(1).

The 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.

To read about Clarke and O’Reilly’s settlements, click here.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.