Enforcement Notice - Decision - IIROC Imposes a $130,000 Fine on PEAK Securities Inc.

MONTRÉAL, Sept. 17, 2020 /CNW/ - On September 15, 2020, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC Staff and PEAK Securities Inc.

PEAK Securities Inc. admitted having failed in its duty to establish and maintain a system that allowed adequate supervision of the activities of its personnel. It also admitted having failed to fulfil its supervisory responsibilities with respect to the fees invoiced in certain accounts, by failing to maintain a system of internal controls and monitoring that was reasonably designed to ensure compliance with IIROC's regulatory requirements.

Specifically, the firm admitted having committed the following contraventions:

(a)   Between February 2016 and May 2018, PEAK Securities Inc. failed to establish and maintain a system that allowed adequate supervision of the activities of its personnel, contrary to IIROC Dealer Member Rule 38.1.

(b)  Between January 2012 and May 2018, PEAK Securities Inc. failed to establish and maintain a system of internal controls and monitoring that was reasonably designed to ensure compliance with IIROC's regulatory requirements, thus failing to fulfill its supervisory responsibilities with respect to the fees invoiced in certain accounts, contrary to IIROC Dealer Member Rule 38.1 and Rule 2500.

PEAK Securities Inc. agreed to the following penalties:

(a)   A fine in the amount of $80,000 for count 1;

(b)   A fine in the amount of $50,000 for count 2.

It must also pay IIROC costs in the amount of $5,000.

IIROC formally initiated the investigation into PEAK Securities Inc.'s conduct in November 2017. PEAK Securities Inc. is an IIROC-regulated firm.

The Settlement Agreement is available at
http://www.iiroc.ca/documents/2020/13d5feec-bd0c-412a-bc9d-bbf6ab9cdf9d_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 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 of membership 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]

Related Links

www.iiroc.ca