Bond deal ends in $50,000 fine

By Staff | March 19, 2012 | Last updated on March 19, 2012
2 min read

Following a disciplinary hearing on May 25 and October 27, 2011, a hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has found that Julian Edward Pope contravened IDA By-law 29.3A (now IIROC Rule 29.3A) and IDA Policy 5, Section 4.1 (now IIROC Rule 2800).

The panel’s written decision dated December 19, 2011and its supplementary decision dated February 13, 2012 are available here.

Specifically, the panel found that Pope committed the following violations:

(a) On April 4, 2008 he participated in a bond offering by purchasing bonds into his firm’s inventory account, through a client, thereby failing to give priority to other client orders for the same bond offering, contrary to IDA By-law 29.3A.; and

(b) On April 4, 2008 and in the connection with the bond offering, he failed to act fairly, honestly and in good faith when executing and administering trades in the domestic debt market by entering into an arrangement with a client whereby the client agreed to purchase bonds of the upcoming offering on behalf of the respondent’s inventory account, contrary to IDA Policy 5, section 4.1.

The hearing panel imposed the following penalty on Pope:

(a) a fine in the sum of $25,000 for his contravention of IDA By-law 29.3 A (now IIROC Rule 29.3A);

(b) a fine in the sum of $25,000 for his contravention of IDA Policy 5 section 4.1; and

(c) a requirement that Pope re-write the Conduct & Practices Handbook Course (CPH) and the Trader Training Course (TTC) by April 20, 2012.

Pope is also required to pay costs in the amount of $15,000.

IIROC formally initiated the investigation into Pope’s conduct in September 2008. The violations occurred when he was a registered representative with the Toronto branch of HSBC (Canada) Inc., an IIROC regulated firm. Pope is currently registered with Desjardins Securities Inc., an IIROC regulated firm. staff


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