Online trading company fined $65,000

By Staff | January 9, 2013 | Last updated on January 9, 2013
1 min read

On December 19, 2012, a hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a settlement agreement between IIROC staff and optionsXpress Canada Corp.

OptionsXpress admitted it failed to correct deficiencies identified during a Business Conduct Compliance Examination despite representing that it would do so.

Specifically, optionsXpress admitted to the following violation:

a) Between April 2008 and January 2012, optionsXpress failed to correct deficiencies identified during a Business Conduct Compliance Examination despite representing that it would do so and in doing so:

i. Failed to maintain a proper supervisory system, contrary to IIROC Dealer Member Rules 29.27 and 38.1; and

ii. Failed to observe high standards of ethics and conduct in the transaction of its business and engaged in business conduct or practice which is unbecoming or detrimental to the public interest, contrary to IIROC Dealer Member Rule 29.1 (IDA By-law 29.1 prior to June 1, 2008).

Pursuant to the settlement agreement, optionsXpress agreed to a fine of $65,000. It also agreed to pay costs in the amount of $2,500.

Read the settlement agreement.

IIROC formally initiated the investigation into optionsXpress’ conduct in August 2012.

Advisor.ca staff

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.