IIROC finds against Jean-Luc Beaudoin

By Staff | June 8, 2011 | Last updated on June 8, 2011
1 min read

A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has found that Jean-Luc Beaudoin violated IIROC rules by failing to properly supervise transactions by certain registered representatives who were under his supervision.

The panel will meet at a future date to determine the appropriate penalty. The penalty hearing is open to the public, unless the panel orders otherwise. Its decision and reasons will be made available at www.iiroc.ca.

Specifically, the panel found that Beaudoin violated IIROC Rule 1300 by:

  • failing to properly question the merit of certain trades made by a representative who was under his supervision, even though the client was a consultant to the companies involved and there were indications of possible market manipulation.

The panel also found that Beaudoin violated IIROC Rule 29.1 by:

  • failing to keep a proper record of his daily supervision reviews, his inquiries and their follow-up regarding the trading activity of the representatives under his supervision.

The panel also found that two allegations were unfounded: that Beaudoin failed to question receipt of certain securities by representatives under his supervision; and that he failed to question the merit of certain transactions in client accounts.

IIROC began investigating Beaudoin’s conduct in February 2008. The violations occurred while Beaudoin was the Branch Manager at the Brossard branch of Desjardins Securities Inc., an IIROC-regulated firm. Beaudoin is still registered with this firm.

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