Enforcement Notice - Decision - 22-0175 - IN THE MATTER OF FORTRADE CANADA LIMITED - Temporary Order

TORONTO, Nov. 10, 2022 /CNW/ - Following an application made with notice on November 9, 2022, in Toronto, Ontario, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) granted a temporary order in the matter of Fortrade Canada Limited.  The temporary order includes the following terms and conditions:

1. Fortrade, by its agents, employees, directors, or otherwise, shall not make recommendations to clients or prospective clients in connection with trading in securities or contacting any person, whether by email, telephone, SMS, or otherwise, for the purpose of soliciting or recommending trading with Fortrade and shall comply with the requirements applicable to an "order execution only account" as defined in subsection 1201(2) of the IIROC Rules and conduct its activities consistent with the guidance set forth in Guidance Note GN- 3400-21-003;
2. Fortrade shall not open any new client accounts;
3. Fortrade shall not seek the deposit of additional funds into existing client accounts, except that Fortrade may contact clients who have a margin deficiency to inform them of such margin deficiency;
4. Fortrade shall provide to IIROC Enforcement Staff monthly, within seven days of the last day of the previous month, audio recordings of all telephone calls with its clients during the previous month. In respect of the month of October 2022, Fortrade shall provide all available audio recordings of telephone calls with its clients still in its possession by November 16, 2022; and
5. Fortrade shall provide to IIROC Enforcement Staff monthly, within seven days of the last day of the previous month, an audit trail of its monitoring of telephone calls and any other form of client communications, which audit trail shall include the number of communications sampled, the time, date and type of the communication, the name of the Fortrade representative, the name of the client, and any queries or other measures taken as a result of the monitoring.  In respect of the month of October 2022, Fortrade shall provide the audit trail by November 16, 2022.

The terms and conditions of the temporary order shall remain in effect until the conclusion of the hearing on the merits or until further order of a hearing panel.

The Hearing Panel's temporary order is available at:

Fortrade Canada Limited – Temporary Order

The Reasons for granting the temporary order will be made available at www.iiroc.ca.   

The Notice of Application pursuant to which the temporary order was granted is available at:

Fortrade Canada Limited – Notice of Application

The Temporary Order relates to a disciplinary proceeding to be initiated against Fortrade Canada Limited.

IIROC formally initiated the investigation into Fortrade Canada Limited's conduct in August 2021.  Fortrade Canada Limited is an IIROC-regulated firm. 

All information about disciplinary proceedings relating to current and former member firms is available in the Enforcement section of the IIROC website.

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

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

IIROC is the pan-Canadian self-regulatory organization that oversees all investment dealers and their trading activity in Canada's debt and equity markets. IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while supporting healthy Canadian capital markets. IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of 174 Canadian investment dealer firms of varying sizes and business models, and their more than 32,000 registered employees. IIROC also sets and enforces market integrity rules regarding trading activity on Canadian debt and equity marketplaces. For more information, visit www.iiroc.ca.

SOURCE Investment Industry Regulatory Organization of Canada (IIROC) - General News

Enforcement Contact: Andrew P. Werbowski, Director, Enforcement Litigation, 416 943-5789, [email protected]; Media Contact: Julia Mackenzie, Public Affairs Specialist, 416 786-1650, [email protected]