IN THE MATTER OF RBC Dominion Securities Inc., Jean-Pierre Ménard and Serge Leclaire - Settlement Accepted

MONTRÉAL, Aug. 13, 2012 /CNW/ - Following a hearing held on June 14, 2012, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement between IIROC Staff and RBC Dominion Securities Inc., Jean-Pierre Ménard and Serge Leclaire.

RBC Dominion Securities Inc., Mr. Ménard and Mr. Leclaire have admitted that they failed in their gatekeeper duty when they allowed Earl Jones to have numerous trading authorizations for numerous unrelated clients and did not question certain withdrawals from certain accounts for which Earl Jones had trading authorization.

RBC Dominion Securities Inc., Mr. Ménard and Mr. Leclaire admitted to the following violations:

Between August 2003 and December 31, 2008, they failed in their gatekeeper duty by:

(a)     Permitting Earl Jones to have numerous authorizations to trade on behalf of numerous unrelated clients;

(b)     Not questioning withdrawals from certain accounts for which Earl Jones had trading authorization; contrary to Dealer Member Rule 29.1 [IDA By-law 29.1 prior to June 1, 2008].

Pursuant to the Settlement Agreement, RBC Dominion Securities Inc., Mr. Ménard and Mr. Leclaire have agreed to the following penalties:

(a)     Mr. Leclaire shall pay IIROC a fine of $100,000;

(b)     Mr. Ménard shall pay IIROC a fine of $100,000;

(c)     Mr. Leclaire and Mr. Ménard's approved registration status is suspended for six months, with the suspensions to run consecutively;

(d)     RBC Dominion Securities Inc. shall pay IIROC a fine of $500,000.

RBC Dominion Securities Inc., Mr. Ménard and Mr. Leclaire have also agreed to pay costs in the amount of $20,000.

The Settlement Agreement is available at:

http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=71AAE3A83B0948959B4AFCCEF11D929A&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 RBC Dominion Securities Inc.'s conduct in October 2010. RBC Dominion Securities Inc. is an IIROC-regulated firm.

IIROC formally initiated the investigation into Mr. Ménard's conduct in March 2010. The violations occurred when the latter was a Registered Representative with the Montréal branch (Place Ville-Marie) of RBC Dominion Securities Inc. Mr. Ménard is still a Registered Representative with an IIROC-regulated firm.

IIROC formally initiated the investigation into Mr. Leclaire's conduct in March 2010. The violations occurred when the latter was a Registered Representative with the Montréal branch (Place Ville-Marie) of RBC Dominion Securities Inc. Mr. Leclaire is still a Registered Representative with an IIROC-regulated firm.

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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.

IIROC Notice 12-0249 Enforcement Notice/News Release - IN THE MATTER OF RBC Dominion Securities Inc., Jean-Pierre Ménard and Serge Leclaire - Settlement Accepted

SOURCE: Investment Industry Regulatory Organization of Canada (IIROC) - General News