On November 9, 2012, a hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a settlement agreement, with sanctions, between IIROC staff and Richard Allan MacDonald.

MacDonald admitted he failed to effectively exercise his supervisory responsibilities with respect to the suitability of holdings in the accounts of six clients.

Specifically, he admitted that from June 2004 to March 2009, he failed to take the supervisory steps that were reasonably required with respect to the suitability of holdings in the accounts of six clients while a branch manager at DWM Securities, contrary to IIROC Dealer Member Rules 38.4(a) and 2500 [IDA Regulation 1300.2 and Policy No. 2 prior to June 1, 2008].

Pursuant to the settlement agreement, he agreed to the following penalties:

a) A $40,000 fine to IIROC; and
b) He shall be prohibited from acting in a supervisory capacity for five years.

MacDonald also agreed to pay costs in the amount of $3,000.00.

IIROC formally initiated the investigation into his conduct in August 2010. He’s no longer a registrant with an IIROC-regulated firm.