Decision Notice - IN THE MATTER OF Echelon Wealth Partners and Stephen Burns - Motion Decision

TORONTO, Nov. 19, 2024 /CNW/ - A motion hearing was held before a hearing panel of the Canadian Investment Regulatory Organization (CIRO) on November 1, 2024 pursuant to the Investment Dealer and Partially Consolidated (IDPC) Rules in the matter of Echelon Wealth Partners and Stephen Burns.

The motions were brought by Echelon Wealth Partners and Stephen Burns in relation to a disciplinary proceeding initiated by CIRO Enforcement concerning the allegations that Echelon and Stephen Burns: 

a. failed to use due diligence to learn and remain informed of the essential facts relative to the accounts and orders of four foreign broker-dealers, 

b. failed to act as gatekeepers in relation to the trading activity in US Over the Counter (OTC) securities by the foreign broker-dealers, and 

c. failed to establish, maintain, and enforce an adequate system of controls and supervision in relation to US OTC trading. 

The Notice of Hearing and Statement of Allegations, which sets out the allegations, are available at:

Echelon Wealth Partners Inc. and Stephen Burns – Notice of Hearing and Statement of Allegations 

Further to the motions, the hearing panel made the following orders:

1.       CIRO Enforcement Staff to further particularize the alleged individual IDPC rule contraventions set out in the Statement of Allegations by November 15, 2024;

2.       Fidelity Clearing Canada ULC (Fidelity) to produce the following records by December 3, 2024:

          a)      Fidelity's policies and procedures relating to U.S. OTC trading (including account opening and supervision) in effect between July 2018 and June 2022;

          b)      All records of Fidelity's due diligence in respect of account opening for the client accounts of the four foreign broker-dealers; and

          c)       All records in respect of Fidelity's compliance monitoring and supervision of U.S. OTC trading in the accounts of the four foreign broker-dealers between July 2018 and June 2022.

The hearing panel's reasons for decision on the motions will be made available at www.ciro.ca.

The alleged contraventions occurred while Stephen Burns was a Registered Representative with Echelon, where he is still employed in a registered capacity. Echelon has been a Dealer Member with CIRO and its predecessors since April 8, 2010. In June 2024, Echelon amalgamated with Ventum Financial Corp., formerly PI Financial Corp., a CIRO-regulated Dealer Member.  

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The 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.

All information about disciplinary proceedings relating to current and former member firms and individual registrants under the Investment Dealer and Partially Consolidated Rules (for investment dealers), the Mutual Fund Dealer Rules (for mutual fund dealers) and the Universal Market Integrity Rules (UMIR) is available on CIRO's website. 

Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by CIRO-regulated investment firms is available free of charge through the AdvisorReport service. Information on how to make 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.

SOURCE Canadian Investment Regulatory Organization (CIRO)

Kate Morris, Senior Corporate Communications and Public Affairs Specialist, [email protected], Phone: [phone]