IN THE MATTER OF Michael Reid Ast - Settlement Accepted

TORONTO, July 26, 2012 /CNW/ - Following a hearing on July 4, 2012, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and Michael Reid Ast.

Mr. Ast admitted that he engaged in discretionary trading over two decades in certain client accounts with clients' consent but without obtaining the necessary prior written authorization from the clients and his firm.

Specifically, Mr. Ast admitted to the following violation:

			Between 1991 and 2009 the Respondent engaged in discretionary trading in the accounts of 27 clients without first having the accounts approved and accepted as discretionary accounts, contrary to IIROC Dealer Member Rule 1300.4 (IDA Regulation 1300.4 prior to June 1, 2008).

Pursuant to the Settlement Agreement, Mr. Ast agreed to the following penalty:

			a)	A fine to IIROC in the sum of $20,000; and
			b)	A period of suspension from registration in any category with IIROC for two months.

Mr. Ast also agreed to pay costs in the amount of $5,000.

The Settlement Agreement and the Hearing Panel's decision is available at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=59FAC6354D9A4B539C27D2FDBF7E8D06&Language=en

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 the Mr. Ast's conduct in October 2010.  The violations occurred when he was a Registered Representative with the Toronto Brookfield Place Branch of CIBC Wood Gundy, an IIROC-regulated firm.   Mr. Ast continues to be a Registered Representative with the Toronto Brookfield Place Branch.

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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: 

Jeff Kehoe
Vice President, Enforcement
416 943-6996
[email protected] 

Media Contact: 

David Thomas
Director, Public Affairs
416.943.6921
[email protected]