Enforcement Notice - Decision - IIROC Issues Disciplinary Decision for Former Toronto Investment Advisor Yonathan Chanoch Shields

TORONTO, July 28, 2021 /CNW/ - Following a disciplinary hearing held virtually, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) found that Yonathan Chanoch Shields was liable for implementing high-risk options on a futures trading strategy for nine clients; the clients suffered a combined loss of approximately $1.2 million USD. 

The Hearing Panel's reasons for the decision on liability, dated July 20, 2021, can be found here: Re: Shields, 2021 IIROC 15

Specifically, the Hearing Panel found that Mr. Shields committed the following violations:

(a)	failed to use due diligence to learn and remain informed of the essential facts relative to certain clients, contrary to Dealer Member Rule 1300.1(a); and
(b)	failed to ensure that recommendations were suitable for certain clients, contrary to Dealer Member Rule 1300.1(q).

A separate hearing will be held to determine the penalty to be imposed on Mr. Shields, the date of which will be made available 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.

IIROC formally initiated the investigation into Mr. Shields's conduct in April 2018. The alleged violations occurred while he was a Registered Representative with the Toronto branch of R.J. O'Brien & Associates Canada Inc., an IIROC-regulated firm. Mr. Shields is no longer a registrant with an IIROC-regulated firm.

*  *  *

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 of varying sizes and business models, and their more than 30,000 registered employees. 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, Vice-President, Enforcement, 416 646-7253, [email protected]; Media Contact: Evelyn Tchakarov, Public Affairs Specialist, [email protected]

Related Links

www.iiroc.ca