TORONTO, Aug. 5, 2021 /CNW/ - Following a disciplinary hearing held on May 10, 2021 a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) found that Alfred Drose was liable for failing to know his client and excessive trading that was outside the bounds of good business practice.
The Hearing Panel's reasons for the decision on liability, dated July 6, 2021, is available at:
Re Drose, 2021 IIROC 14
Specifically, the Hearing Panel found that Mr. Drose committed the following violations:
Between February 2014 and June 2015, Mr. Drose engaged in excessive trading in a client's accounts, which was not within the bounds of good business practice and was unsuitable for the client, contrary to Dealer Member Rules 1300.1 (o), 1300.1(q), and 1300.1(s).
Between February 2014 and June 2015, Mr. Drose failed to use due diligence to learn and remain informed of the essential facts relative to his client, contrary to Dealer Member Rule 1300.1(a); and
A separate hearing will be held to determine the penalty to be imposed on Mr. Drose, the date of which 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.
IIROC formally initiated the investigation into Mr. Drose's conduct in December 2019. The violations occurred while he was a Registered Representative with the Toronto branch of Chippingham Financial Group, formerly an IIROC-regulated firm. Mr. Drose is no longer a registrant with an IIROC-regulated firm.
* * *
IIROC is the pan-Canadian self-regulatory organization that oversees all investment dealers and their trading activity in Canada's debt and equity markets. IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while supporting healthy Canadian capital markets. IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of 175 Canadian investment dealer firms of varying sizes and business models, and their more than 30,000 registered employees. IIROC also sets and enforces market integrity rules regarding trading activity on Canadian debt and 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
View original content: http://www.newswire.ca/en/releases/archive/August2021/05/c7990.html