On November 16, 2016, a hearing panel of the Investment Industry Regulatory Organization of Canada accepted a settlement agreement, with sanctions, between IIROC staff and Paul Wayne Lynch.
Lynch admitted that he exercised time and price discretion in client accounts and accepted trading instructions without written authorization. Specifically, Lynch admitted to the following violations:
a) between 2010 and 2012, Lynch made discretionary trades in the accounts of three clients, without the accounts having been approved and accepted as discretionary accounts, contrary to IIROC Dealer Member Rule 1300.4; and
b) between 2010 and 2012, Lynch failed to maintain required minimum records in respect of the account of one client, in that he accepted trading instructions from the client’s father, without obtaining written authorization from the client to do so, contrary to IIROC Dealer Member Rule 200.1(i)(3) (now IIROC Dealer Member Rule 200.2(m)(iii)).
Pursuant to the settlement agreement, Lynch agreed to the following penalties:
a) a global fine of $17,500; and
b) a requirement to re-write the Conduct and Practices Handbook course within six months of the date of the acceptance of the settlement agreement.
Lynch also agreed to pay costs in the amount of $2,000.
Read the settlement agreement.
IIROC formally initiated the investigation into Lynch’s conduct in October 2014. The conduct occurred while he was a registered representative with the Ottawa, Ontario branch of CIBC World Markets Inc., an IIROC-regulated firm. Lynch is still employed in a registered capacity with the same firm.