Legal Issues

On July 20, 2015, an IIROC hearing panel accepted a settlement agreement, with sanctions, between IIROC staff and Zhenyu Li.

In the agreement, Li admitted that between August 2012 and November 2012, he entered orders that he ought reasonably to have known would create (or could reasonably be expected to create) a false or misleading appearance of trading activity in or interest in the purchase or sale of the securities or an artificial sale price for the securities, contrary to UMIR 2.2(2) and UMIR Policy 2.2.

Pursuant to the settlement agreement, Li agreed to the following penalties:

(a) A fine in the amount of $10,000; and

(b) A suspension of access to all IIROC-regulated marketplaces for one month effective July 20, 2015.

Li also agreed to pay costs in the amount of $1,500.

IIROC formally initiated the investigation into Li’s conduct in June 2013. The conduct occurred while he was a trader with National Bank Financial, an IIROC-regulated firm. Li is no longer a registrant with an IIROC-regulated firm.

Read the settlement agreement.

Originally published on Advisor.ca

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