IIROC and Dundee have reached a settlement agreement.

Dundee admitted that it failed to effectively exercise its supervisory responsibilities as its compliance officers approved account forms with objectives that were too risky for one client couple, and failed to make inquiries into the suitability of trades in the accounts of two client couples.

Specifically, Dundee admitted to the following violations:

a) Between approximately May 2006 and April 2008, Dundee failed to effectively exercise its supervisory responsibilities concerning the management of the accounts of clients, RH and JH, contrary to IDA By-Law 1300.2(a) (now known as IIROC Dealer Member Rule 1300.2(a)) and Policy No. 2 (now known as IIROC Dealer Member Rule 2500); and
b) Between approximately August 2007 and April 2008, Dundee failed to effectively exercise its supervisory responsibilities concerning the management of the accounts of clients, JR and ER, contrary to IDA By-Law 1300.2(a) (now known as IIROC Dealer Member Rule 1300.2(a)) and Policy No. 2 (now known as IIROC Dealer Member Rule 2500).

Pursuant to the settlement agreement, Dundee agreed to pay a $110,000 fine to IIROC. Dundee also agreed to pay $10,000 in costs.

The settlement agreement can be found here.