IN THE MATTER OF CIBC World Markets Inc. - Settlement Accepted

CALGARY, Aug. 9, 2012 /CNW/ - On July 24, 2012, 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).

CIBC admitted that from May 2005 to October 2008, it failed to effectively exercise its supervisory responsibilities by allowing options trades that were not suitable for two clients contrary to IIROC Dealer Member Rules 1300.2(a) and 2500 (formerly IDA Regulation 1300.2(a) and Policy No.2).

Pursuant to the Settlement Agreement, CIBC agreed to the penalty of a fine to IIROC in the amount of $85,000

CIBC also agreed to pay costs to IIROC in the amount of $10,000.

The panel's decision, together with the Settlement Agreement, 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 CIBC's conduct in August 2010.  CIBC is still an IIROC-regulated firm.

IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada. Created in 2008 through the consolidation of the Investment Dealers Association of Canada and Market Regulation Services Inc., IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while maintaining efficient and competitive capital markets.

IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of dealer firms and their registered employees and through setting and enforcing market integrity rules regarding trading activity on Canadian 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:
Warren Funt
Vice President, Western Canada
604.331.4750
[email protected]

Media Contact:
David Thomas
Director, Public Affairs
416.943.6921
[email protected]