Enforcement Notice - Decision - IIROC Fines and Permanently Bans Former Toronto Investment Advisor John Richard Belknap

TORONTO, June 12, 2020 /CNW/ - On May 19, 2020, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and John Richard Belknap.

Mr. Belknap engaged in undisclosed outside business activities in relation to his involvement with three private companies and a club intended for buying and selling art. His activities, which involved his clients, included facilitating investments in the companies and loans to both the companies and their primary investor.

Specifically, Mr. Belknap admitted to the following violations:

(a) Between 2003 and May, 2018, he engaged in undisclosed outside business activities in relation to three private companies, contrary to Dealer Member 18.14; and

(b) Between 2005 and 2016, he engaged in an undisclosed outside  business activity involving clients relating to the purchase and sale of art, contrary to Dealer Member Rule 18.14.

Pursuant to the Settlement Agreement, Mr. Belknap agreed to the following penalty:

(a) A global fine of $175,000; and

(b) A permanent ban on registration from registration in any capacity with IIROC.

Mr. Belknap also agreed to pay costs in the amount of $10,000.

The Settlement Agreement is available at http://www.iiroc.ca/documents/2020/47e4a845-a276-4b99-83b5-40e451b6a8c8_en.pdf

The Hearing Panel's decision will be made available at www.iiroc.ca.

IIROC formally initiated the investigation into Mr. Belknap's conduct in December 2018. The conduct occurred while he was a Registered Representative with the Toronto branch of Scotia Capital Inc., an IIROC-regulated firm. Mr. Belknap is no longer a registrant with an IIROC-regulated firm.

Documents related to ongoing IIROC enforcement proceedings – including Reasons and Decisions of Hearing Panels – are posted on the IIROC website as they become available. Click here to search and access all IIROC enforcement documents.

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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 175 Canadian investment dealer firms and their nearly 30,000 registered employees, the majority of whom are commonly referred to as investment advisors. IIROC also sets and enforces market integrity rules regarding trading activity on Canadian debt and equity marketplaces.

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.

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.

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

Enforcement Contact: Charles Corlett, Director, Enforcement Litigation, 416 646-7253, [email protected]; Media Contact: Andrea Zviedris , Manager, Media Relations, 416 943-6906, [email protected]

Related Links

www.iiroc.ca