Enforcement Notice - Decision - IIROC Fines Former Drummondville Investment Advisor Christian Desmarais Français
MONTRÉAL, May 7, 2020 /CNW/ - On April 28, 2020, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC Staff and Christian Desmarais.
Specifically, Mr. Desmarais admitted to the following contraventions:
a) Between January 29 and February 2, 2016, Mr. Desmarais recommended the purchase of a security to three of his clients, whereas he had information regarding this security that had not been disclosed to the public and whereas he should have known that this information could affect the decision of a reasonable investor, contrary to IIROC Dealer Member Rule 29.1.
b) On or around January 28, 2016, Mr. Desmarais failed in his duty to protect the financial markets by not taking the appropriate measures in the circumstances, when, after executing a buy transaction in a security for his own account, as well as for the account of a client, he learned information about the security that had not been disclosed to the public and which he should have known could affect the decision of a reasonable investor, contrary to IIROC Dealer Member Rule 29.1.
Mr. Desmarais agreed to the following penalties:
a) A fine of $25,000 for count 1;
b) A fine of $15,000 for count 2;
c) Disgorgement of the net benefit, after tax, derived by Mr. Desmarais as a result of the trading activities in question, namely an amount of $30,000;
d) Prohibition of registration with IIROC in any capacity for a period of five (5) years, beginning February 24, 2016;
e) Strict supervision for twelve months, in the event of re-registration.
Mr. Desmarais shall also pay costs to IIROC in the amount of $2,500.
IIROC formally initiated the investigation into Mr. Desmarais' conduct in April 2016. The contraventions occurred while Mr. Desmarais was a registered representative at the Drummondville branch of Desjardins Securities Inc., an IIROC-regulated firm. Mr. Desmarais has not been a registrant with an IIROC-regulated firm since February 24, 2016.
The Settlement Agreement is available at
http://www.iiroc.ca/documents/2020/119154d0-f278-47a5-ac63-8d678c05944c_en.pdf
The Hearing Panel's decision will be made available to the public at www.iiroc.ca.
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 more than 170 Canadian investment dealer firms and their more than 29,000 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: Claudyne Bienvenu, Vice-President, Québec and Atlantic, 514 878-2854, [email protected]; Media Contact: Andrea Zviedris, Manager, Media Relations, 416 943-6906, [email protected]
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