Enforcement Notice - IN THE MATTER of Frédéric Lavoie - Discipline Hearing
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Investment Industry Regulatory Organization of Canada (IIROC) - General NewsApr 15, 2013, 13:00 ET
MONTRÉAL, April 15, 2013 /CNW/ - A hearing has been scheduled before a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC), in the matter of Frédéric Lavoie.
The hearing concerns allegations that Mr. Lavoie failed to use due diligence to ensure that he had the necessary knowledge of the features and risks inherent in leveraged Exchange-Traded Funds before recommending such an investment and failed to inform his employer that he was engaging in an outside business activity.
The hearing is open to the public unless the Panel orders otherwise. The decision of the Hearing Panel 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.
| Hearing Date: | May 22, 2013, at 10 a.m. |
| Location: | Centre Mont-Royal, Mansfield 3 Room |
| 2200 Mansfield Street | |
| Montréal (Québec) |
Specifically, the allegations are that:
| a) | Between March 8, 2008 and March 2, 2009, Mr. Lavoie failed to use due diligence by neglecting to take reasonable means to ensure that he had the necessary knowledge of the features and risks inherent in leveraged Exchange-Traded Funds before recommending such an investment to two of his clients, contrary to IIROC Dealer Member Rule 1300.1(a) (formerly IDA Regulation 1300.1(a)); |
| b) | Between March 8, 2008 and March 2, 2009, Mr. Lavoie failed to use due diligence by neglecting to take reasonable means to ensure that his investment recommendations in leveraged Exchange-Traded Funds constituted a suitable investment for two of his clients, given their financial and personal circumstances and their investment objectives, contrary to IIROC Dealer Member Rules 1300.1(a), (p) and (q) (formerly IDA Regulations 1300.1(a), (p) and (q)); |
| c) | Between January 20, 2006 and April 30, 2009, Mr. Lavoie engaged in another outside business activity without the knowledge of the IIROC Dealer Member with whom he was employed and without the latter's consent, contrary to IIROC Dealer Member Rule 29.1 (formerly IDA By-Law 29.1). |
IIROC formally initiated the investigation into Mr. Lavoie's conduct in May 2011. The alleged violations occurred when he was a Registered Representative with the Sainte-Foy branch of Laurentian Bank Securities Inc., an IIROC-regulated firm. Mr. Lavoie is no longer a registrant with an IIROC-regulated firm.
The Notice of Hearing which sets out the allegations is available at:
http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=9872C2B1619645BE9D01A781E00D7683&Language=en.
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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
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