Enforcement Notice Hearing - IN THE MATTER OF Donald Earl Phillips - Discipline Hearing

CALGARY, Jan. 23, 2015 /CNW/ - A hearing was originally scheduled before a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) in the matter of Donald Earl Phillips on November 4 – 6 and November 12 – 14, 2014.  The hearing was adjourned and has now been rescheduled for February 5 – 6, 2015, and February 10 – 13, 2015. 

The hearing concerns allegations stemming from Mr. Phillips' recommendations to 11 of his clients that they purchase Flow-Through Limited Partnership Units.  IIROC staff alleges that Mr. Phillips failed to know these clients, and failed to recognize that such an investment was unsuitable for them.  IIROC staff further alleges that, in most cases, the purchase of the Flow-Through Limited Partnership Units was done on a discretionary basis.

The hearing is open to the public, unless the Hearing Panel orders otherwise. The decision of the Hearing Panel will be made available at www.iiroc.ca.

Specifically, the allegations are that:

Count 1:

Between April 2006 and August 2008, Mr. Phillips failed to use due diligence to learn and remain informed of the essential facts relative to 11 of his clients, contrary to Dealer Member Rule 1300.1(a) (Investment Dealer Association by-law 1300.1(a) prior to June 1, 2008);

Count 2:

Between May 2006 and November 2008, Mr. Phillips made unsuitable recommendations for the accounts of 11 clients, contrary to Dealer Member Rule 1300.1(q) (Investment Dealer Association by-law 1300.1(q) prior to June 1, 2008); and

Count 3:

Between May 2006 and November 2008, Mr. Phillips engaged in discretionary trading in the accounts of nine clients, without the accounts first having been approved as a discretionary account, contrary to Dealer Member Rule 1300.4 (Investment Dealer Association by-law 1300.4 prior to June 1, 2008).

IIROC formally initiated the investigation into Mr. Phillips' conduct in May 2012.  The alleged violations occurred while he was a Registered Representative with the Winnipeg branch of Wellington West Capital Inc., which is no longer an IIROC-regulated firm. Mr. Phillips 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=AD70A2D7FC1F49CA8B85496AE0800D1E&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 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

Related Links

http://www.iiroc.ca