CIRO Sanctions Gravitas Securities and Blayne Creed

TORONTO, Oct. 23, 2023 /CNW/ - On October 3, 2023, a hearing panel of the Investment Dealer Division of the Canadian Investment Regulatory Organization (CIRO) accepted a settlement agreement, with sanctions, between Enforcement Staff and Gravitas Securities and Blayne Creed.

Gravitas Securities admitted that it failed to have and maintain risk adjusted capital greater than zero, contrary to Dealer Member Rule 17.1.

Mr. Creed, as Ultimate Designated Person of Gravitas Securities, failed to promote compliance by Gravitas Securities with the rules by agreeing to participate in a bought deal financing, which resulted in Gravitas Securities' capital deficiency, contrary to Dealer Member Rule 38.5.

Pursuant to the settlement agreement, Gravitas Securities agreed to disgorge its portion of the commissions from the financing in the amount of $38,834.40, and Blayne Creed agreed to the following sanctions:

a)      disgorgement of his portion of the commissions from the financing in the amount of $38,834.40;

b)      a fine in the amount of $40,000; and

c)       a prohibition on his approval in the category of Ultimate Designated Person for a period of one year.

Mr. Creed also agreed to pay costs in the amount of $15,000.

The Settlement Agreement is available at:                                                                                                                          

Gravitas Securities Inc. and Blayne Creed – Settlement Agreement 

The hearing panel's decision will be made available at www.iiroc.ca.

The alleged violations occurred while Blayne Creed was a Registered Representative, Ultimate Designated Person, Interim President and Chief Executive Officer of Gravitas Securities Inc. Gravitas Securities Inc. has been a Dealer Member since 2008. In June 2023, its membership with CIRO was suspended per Re Gravitas 2023 CIRO 02.

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All information about disciplinary proceedings relating to current and former member firms and individual registrants is available in the Enforcement section of the IIROC website for investment dealer disciplinary proceedings and the MFDA website for mutual fund dealer disciplinary proceedings.

Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by CIRO-regulated firms (Investment Dealer Division) is available free of charge through the AdvisorReport service. Information on how to make investment dealer, advisor or marketplace-related complaints is available by calling 1-877-442-4322.

CIRO investigates possible misconduct by its member firms and individual registrants. It can bring disciplinary proceedings which may result in sanctions including fines, suspensions, permanent bars, expulsion from membership, or termination of rights and privileges for individuals and firms.

Canadian Investment Regulatory Organization (CIRO) is the national self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada's debt and equity marketplaces. CIRO is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians' trust in financial regulation and the people managing their investments. For more information, visit www.ciro.ca.

SOURCE Canadian Investment Regulatory Organization (CIRO)

Joanna Nicholson, Manager, Public Affairs, [email protected], Phone: [phone]