On June 10, 2014, an IIROC hearing panel accepted a Settlement Agreement, with sanctions, between IIROC staff and RBC Dominion Securities (RBC DS).
RBC DS admitted it failed to supervise one of its registered representatives.
Read: Compliance roundup – June 2014
Specifically, RBC DS admitted to the following violation:
(a) From April 2010 to August 2011, in the manner described in the Settlement Agreement, RBC DS failed to adequately supervise a registered representative (RR) and certain of his client accounts when the RR recommended certain inverse exchange- traded funds to clients, contrary to IIROC Dealer Member Rule 2500.
Pursuant to the Settlement Agreement, RBC DS agreed to the following penalty:
(a) A fine of $90,000.
RBC DS also agreed to pay costs in the amount of $2,500.
The Settlement Agreement and the Hearing Panel’s decision will be made available at www.iiroc.ca.
IIROC formally initiated the investigation into RBC DS’ conduct in April 2013. The conduct occurred at RBC DS’ head office in Toronto, Ontario. RBC DS is an IIROC-regulated firm.
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