On December 5, 2012, an IIROC hearing panel accepted a settlement agreement between IIROC staff and John Lloyd Hanna.

Hanna admitted he failed to use due diligence to learn and remain informed of the essential facts relative to one client, and failed to ensure that recommendations were suitable for that client.

Specifically, Hanna admitted to the following violations:

a) Between April, 2006 and August, 2009, he failed to use due diligence to learn and remain informed of the essential facts relative to his client, contrary to IIROC Rule 1300.1(a) [IDA Regulation 1300.1(a) prior to June 1, 2008];

b) Between April, 2006 and August, 2009, he failed to use due diligence to ensure that recommendations were suitable for his client based on factors including the client’s financial situation, investment knowledge, investment objectives and risk tolerance, contrary to IIROC Rule 1300.1(q) [IDA Regulation 1300.1(q) prior to June 1, 2008].

Pursuant to the settlement agreement, Hanna agreed to the following penalty:

a) He agrees to pay a fine to IIROC in the sum of $30,000;

b) He shall be suspended from registration with IIROC in any capacity for a period of 30 days commencing upon the acceptance of this Settlement Agreement;

c) He shall be subject to a period of six months of close supervision commencing upon the expiry of the period of suspension; and

d) He shall re-write and successfully complete the Conduct and Practices Handbook examination within 12 months of the acceptance of this Settlement Agreement.

Hanna also agreed to pay costs in the amount of $2,500.00.

Read the settlement agreement.