IIROC permanently bans and fines rep $50,000 for failure to co-operate

Following a disciplinary hearing held on March 27, 2017, an IIROC hearing panel found that James Dugald MacArthur was liable of failing to co-operate with an IIROC investigation. Specifically, the hearing panel found that MacArthur committed the following violation:

• From September to November 2016, MacArthur failed to co-operate with an IIROC investigation by failing to provide documents and attend a compelled interview, contrary to the IIROC Consolidated Enforcement, Examination and Approval Rules Section 8104.

The hearing panel imposed the following penalties on MacArthur:

• a fine of $50,000 and
• a permanent ban on registration in any capacity.

MacArthur is also required to pay costs in the amount of $10,000.

IIROC formally initiated the investigation into MacArthur’s conduct in May 2016 after MacArthur failed to repay a loan received from a client.

The investigation violation occurred while he was no longer a registered rep, and he’s currently not an IIROC registrant.

In the reasons for the decision, the hearing panel states that “this was not simply a case where IIROC enforcement staff issued a single letter requesting information and documentation with respect to its investigation. In point of fact, enforcement staff issued three such letters to the respondent […].”

Further, attempts by IIROC to conduct an interview with MacArthur proved fruitless. The hearing panel states in the decision that after an interview was scheduled, MacArthur “would wait until the last minute before the scheduled meeting and then leave a voicemail message indicating that he could not make that particular meeting but that he would be in contact with IIROC staff.”

But contact with staff was never made.

Read the full reasons and decision.

Staff

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