Briefly: “IIROC disciplines software provider” and more news

A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has found that Dale Richard Wells engaged in business conduct unbecoming or detrimental to the public interest when he acted in the role of an advisor without being registered as one.

The panel’s full Reasons for Decision are available on the IIROC website. A separate hearing will be scheduled to determine the penalty to be imposed on Mr. Wells.

Specifically, the panel found that Mr. Wells committed a violation by entering into an arrangement to supply a financial services company with his own computer-generated research that recommended buy and sell opportunities related to mutual funds in return for a fee, and that this information was used regularly by that firm to make trades in an investment fund. In doing so, Mr. Wells acted as an advisor within the meaning of the Alberta Securities Act without being registered as such, contrary to IIROC Rule 29.1.

In its decision, the panel reviewed the requirements to be registered as an advisor under Alberta Securities law, and concluded “the evidence clearly established that the Respondent [Mr. Wells] held none of these qualifications.”

IIROC began the investigation into Mr. Wells’ conduct in March 2008. The violations occurred from February 2006 to July 2008, while Mr. Wells was a Registered Representative with the Lloydminster, Alberta branch of First Financial Securities Inc., an IIROC-regulated firm. Mr. Wells is still a Registered Representative with that firm.

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 and permanent bans or terminations for individuals and firms.

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IIROC sets hearing for Thi Sen Chher

A hearing will be held before a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) to hear evidence and submissions in the matter of Thi Sen Chher.

The hearing relates to allegations that Mr. Chher took advantage of his position of trust with a client, a member of his family, by altering records without her approval, and misappropriating approximately $60,000 for his own investment purposes.

The hearing is open to the public, unless the panel orders otherwise. Its decision and reasons will be made public when available at www.iiroc.ca.

Hearing Date: Wednesday, November 24, 2010, at 10 AM Location: Mansfield 5 Room, Centre Mont-Royal, 2200 Mansfield Street, Montreal, Quebec

Specifically, it is alleged that Mr. Chher engaged in conduct unbecoming or detrimental to the public interest, contrary to IIROC Rule 29.1, by:

(a) Misappropriating client funds; (b) Modifying a client’s personal address without approval in order to receive the client’s monthly statements directly; (c) Modifying a client’s investor profile without approval to obtain greater control over the client’s accounts.

The alleged violations occurred between 2005 and 2007, while Mr. Chher was a Registered Representative at the Montréal branch of National Bank Direct Brokerage Inc. (NBDB), an IIROC-regulated firm. IIROC began the investigation into Mr. Chher’s conduct in August 2007, after receiving a report of irregularities regarding Mr. Chher from NBDB. Mr. Chher is no longer registered with an IIROC-regulated firm.

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MFDA to hear settlement with Partners In Planning

The MFDA today announced that it has issued a Notice of Settlement Hearing regarding the presentation, review and consideration of a proposed settlement agreement by a Hearing Panel of the MFDA’s Prairie Regional Council.

The settlement agreement will be between Staff of the MFDA and Partners In Planning Financial Services Ltd. (the “Respondent”) and involves matters for which the Respondent may be disciplined by a Hearing Panel pursuant to MFDA By-laws. The subject matter of the proposed settlement agreement concerns allegations that:

(a) prior to April 2010, the Respondent failed to establish, implement and maintain adequate policies and procedures to supervise leveraged trades and ensure the suitability of leveraging recommendations made by Approved Persons to clients, contrary to MFDA Rules 2.2.1, 2.5.1 and 2.10 and MFDA Policy No. 2; and

(b) prior to April 2010, the Respondent failed to maintain sufficient records of the supervision of leveraged trading and leveraging recommendations conducted by its Approved Persons, including records of trades reviewed, inquiries made, responses received and resolutions achieved, contrary to MFDA Rules 2.2.1, 2.5.2(b), 2..5.3(b) and 2.5.4 and MFDA Policy No. 2.

The settlement hearing is scheduled to take place on November 25, 2010 commencing at 10:00 a.m. (Central), or as soon thereafter as the hearing can be held, in the hearing room located at the Delta Hotel Regina, 1919 Saskatchewan Drive, Regina, Saskatchewan. The hearing will be open to the public, except as may be required for the protection of confidential matters.

Read the Notice of Settlement Hearing.

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Excel expands into income funds

Excel Funds Management has launched three new funds, including two income funds focused on the emerging markets.

The Excel EM High Income Fund and Excel EM Capital Income Fund are designed for investors seeking the “dramatic growth potential” of the emerging markets, as well as an income stream. The funds are managed by Sergei Strigo, head of emerging market debt and currency at Amundi Asset Management, the eighth largest asset manager in the world.

“The world has changed. Our emerging markets funds offer investors access to high quality companies in some of the world’s fastest growing economies.” said Bhim Asdhir, president and CEO, Excel Funds Management. “Buy-and-hold does not work anymore. Active on-the ground management is absolutely required in these markets. Emerging markets provide a high return low risk proposition right now.”

The third fund, Excel Emerging Markets Fund, is a broadly-based emerging markets equity fund, providing investors with equity exposure to companies based in emerging markets and to international companies expected to benefit from the emerging market economies.

(11/11/10)