On April 3, 2013, a hearing panel of the Investment Industry Regulatory Organization of Canada accepted a settlement agreement between IIROC staff and Daniel Edward Smith.

Smith admitted that from July 2003 to October 2009, he engaged in personal financial dealings with his client without his firm’s knowledge, contrary to Dealer Member Rule 29.1 (IDA By-law 29.1, prior to June 1, 2008).

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

a) A fine of $50,000; and

b) A four-year suspension from registration with IIROC in any capacity commencing upon the acceptance of this settlement agreement.

Smith also agreed to pay costs in the amount of $5,000.00. Read the settlement agreement.

IIROC formally initiated the investigation into Smith’s conduct in June 2010. The alleged violation occurred when he was a registered representative with the Parksville branch of BMO Nesbitt Burns, an IIROC-regulated firm. Smith is no longer a registrant with an IIROC-regulated firm.