HALIFAX, NS, April 27, 2023 /CNW/ - On April 21, 2023, a hearing panel of the Investment Dealer Division of the New Self-Regulatory Organization of Canada (New SRO) accepted a Settlement Agreement, with sanctions, between Enforcement Staff and Lee Fraser Harwood.
Mr. Harwood admitted to conduct involving off-book investments for various clients without authorization.
Specifically, Mr. Harwood admitted to the following violation:
(a) |
In July 2018, the Respondent facilitated off-book investments for various clients without the authorization of his Dealer Member, contrary to Rule 1400 of the Investment Dealer and Partially Consolidated Rules. |
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Pursuant to the Settlement Agreement, the respondent agreed to the following sanctions: |
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(a) |
a fine of $40,000; |
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(b) |
close supervision for six (6) months; and |
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(c) |
rewrite the Conduct and Practices Handbook examination within six (6) months. |
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Mr. Harwood also agreed to pay costs in the amount of $5,000.
The Settlement Agreement is available at:
Harwood, Lee Fraser – Settlement Agreement
The hearing panel's decision will be made available at www.iiroc.ca.
The Investment Dealer Division of New SRO formally initiated the investigation into Lee Fraser Harwood's conduct in May 2020. The conduct occurred while the respondent was a Registered Representative with the Halifax branch of Scotia Capital Inc., at the time an IIROC-regulated firm. The Respondent is still within the industry in a registered capacity at the Halifax branch of BMO Nesbitt Burns Inc.
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 New SRO-regulated firms (Investment Dealer Division) is available free of charge through the AdvisorReport service. Information on how to make investment dealer, advisor or marketplace-related complaints is available by calling 1 877 442-4322.
New SRO investigates possible misconduct by its member firms and individual registrants. It can bring disciplinary proceedings which may result in sanctions including fines, suspensions, permanent bars, expulsion from membership, or termination of rights and privileges for individuals and firms.
New Self-Regulatory Organization of Canada (New SRO) is the national self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada's debt and equity marketplaces. New SRO is carrying on the regulatory functions of the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA), and is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians' trust in financial regulation and the people managing their investments. For more information, visit www.newselfregulatoryorganizationofcanada.ca.
SOURCE New Self-Regulatory Organization of Canada (New SRO)
Enforcement Contact: Claudyne Bienvenu, Vice-présidente pour le Québec et l'Atlantique, 514 878 2854, [email protected]; Media Contact: Julia Mackenzie, Public Affairs Specialist, 416 786-1650, [email protected]
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