On November 29, 2013, an IIROC hearing panel, accepted a settlement agreement, with sanctions, between IIROC staff and Canaccord Genuity Corp. (Canaccord).
Canaccord admitted that it failed to adequately supervise retail client account activity. Specifically, Canaccord admitted to the following violation:
a) Failing to adequately supervise retail client account activity contrary to IIROC Dealer Member Rules 2500 and 1300.2 (prior to June 2008, IDA Policy 2 and IDA Regulation 1300.2)
(i) From 2005 through 2010, by failing to monitor adequately first level supervision and by failing to have effective second tier supervision; and
(ii) From June 2009 to February 2011, by refusing to adopt procedures to reasonably assure itself that its clients who purchased private placements were “accredited investors”.
Pursuant to the settlement agreement, Canaccord agreed to the following penalties:
- A fine of $750,000, plus an additional $310,000 for disgorged commissions.
Canaccord also agreed to pay costs in the amount of $50,000.
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