Enforcement Notice - Decision - IIROC Sanctions CIBC World Markets Inc.

TORONTO, April 6, 2022 /CNW/ - On March 30, 2022, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and CIBC World Markets Inc.

CIBC World Markets Inc. admitted to the following violation:

(a)        Between September 2019 and July 2020, the Respondent failed to comply with its trading supervision obligations to maintain a system of risk management and supervisory controls, policies and procedures reasonably designed, in accordance with prudent business practices, to ensure the management of financial, regulatory and other risks associated with the use by its DEA client of an automated order system contrary to UMIR 7.1, UMIR Policy 7.1 and UMIR 7.13.

Pursuant to the Settlement Agreement, CIBC World Markets Inc. agreed to the following penalty:

(a)        a fine of $150,000.00.

CIBC World Markets Inc. also agreed to pay costs in the amount of $15,000.00.

The Settlement Agreement is available at:                                                                                                   

CIBC World Markets Inc. – Settlement Agreement

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

IIROC formally initiated the investigation into CIBC World Market Inc.'s conduct in April 2020. 

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 31,000 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]