A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has approved a settlement agreement, with sanctions, between IIROC staff and Beacon Securities Limited.

In the agreement, Beacon Securities admits to failing to comply with its best price obligation, and failing to have adequate policies and procedures in place to ensure compliance with that obligation, contrary to the Universal Market Integrity Rules (UMIR).

Beacon Securities agrees to a $70,000 fine and to pay $5,000 in costs.

Specifically, Beacon admits that it:

  • Failed to make reasonable efforts to ensure that orders were executed at the best price, contrary to UMIR 5.2 and UMIR Policy 5.2; and
  • Failed to have adequate policies and procedures in place in order to ensure reasonable efforts were made to execute orders at the best price, contrary to UMIR 7.1.

The violations occurred from December 2008 until March 2010. IIROC began its investigation into Beacon Securities’ conduct in March 2010. Beacon Securities Limited is currently an IIROC-regulated firm.