TORONTO, Sept. 16, 2021 /CNW/ - On September 14, 2021, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and Joseph Anthony Thomson.
Mr. Thomson admitted that he failed to identify and address conflicts of interest, failed to ensure that investments in a proprietary product were made in accordance with the provisions of the Offering Memorandum, and failed to use due diligence to ensure that all orders accepted and recommendations made were suitable for clients.
Specifically, Mr. Thomson admitted to the following violations:
(a) Between June 2017 and June 2019, the Respondent as the UDP of PSC failed to identify and address existing and potential material conflicts of interest in a fair equitable and transparent manner, and consistent with the best interests of PSC's clients, contrary to Dealer Member Rule 42;
(b) Between June 2017 and June 2019, the Respondent as portfolio manager failed to take all necessary steps to ensure that investments in PFL for which he was the portfolio manager, were made in accordance with the terms of the applicable Offering Memorandum, contrary to Consolidated Rule 1400; and
(c) Between June 2017 and June 2019, Thomson, as UDP, failed to supervise the activities of PSC to ensure compliance with IIROC requirements and failed to use due diligence to ensure that all orders accepted and recommendations made were suitable for clients and within the bounds of good business practice, contrary to Dealer Member Rules 38.5(c), 1300.1(a), (o), (p), (q) and (s).
Pursuant to the Settlement Agreement, Mr. Thomson agreed to the following penalty:
(a) A prohibition of approval as an Ultimate Designated Person for five years, commencing on July 31, 2021; and
(b) A prohibition of approval as a Registered Representative for one year, commencing on July 31, 2021.
Mr. Thomson also agreed to pay costs in the amount of $100,000.
The Settlement Agreement is available at:
The Hearing Panel's decision will be made available at www.iiroc.ca.
IIROC would like to thank the Ontario Securities Commission for its extensive assistance in this matter and the parallel mediation.
IIROC formally initiated the investigation into Mr. Thomson's conduct in November 2018. The alleged violations occurred while he was a Chief Executive Officer, Ultimate Designated Person, Registered Representative and Portfolio Manager of PACE Securities Corp., an IIROC-regulated firm. Mr. Thomson is no longer a registrant with an IIROC-regulated firm.
* * *
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 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.
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 174 Canadian investment dealer firms of varying sizes and business models, and their more than 31,000 registered employees. IIROC also sets and enforces market integrity rules regarding trading activity on Canadian debt and equity marketplaces. For more information, visit www.iiroc.ca.
SOURCE Investment Industry Regulatory Organization of Canada (IIROC) - General News
View original content: http://www.newswire.ca/en/releases/archive/September2021/16/c1227.html