fine-gavel-courtroom

On June 17, 2014, a hearing panel of the Investment Industry Regulatory Organization of Canada accepted a settlement agreement, with sanctions, between IIROC staff and David Hayes.

Hayes admitted he failed to know his client and accepted trading instructions from another client without obtaining authorization to do so.

Specifically, he admitted to the following violations:

  • From 2003 to November 2010, Hayes failed to know his client EM, contrary to IIROC Dealer Member Rule 1300.1 (a) (IDA Regulation 1300.1(a) prior to June 1, 2008.); and
  • From February 2003 to November 2010, Hayes accepted trading instructions from client PM for client EM’s RRSP account, without obtaining authorization from EM to do so, contrary to IIROC Dealer Member Rule 200.1(i) 3 (IDA Regulation 200.1(i)3 prior to June 1, 2008.)

Pursuant to the settlement agreement, Hayes agreed to the following penalty:

  • Payment of a fine in the amount of $20,000 for count 1;
  • Payment of a fine in the amount of $5,000 for count 2; and
  • A re-write of the CPH examination within 12 months of the date of acceptance of the settlement agreement.

Hayes also agreed to pay costs in the amount of $3,000.

Read the settlement agreement.

IIROC formally initiated the investigation into Hayes’ conduct in September 2011. The conduct occurred when he was a registered representative with the Mississauga branch of CIBC World Markets, an IIROC-regulated firm, where Hayes is currently registered.

Originally published on Advisor.ca

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