IIROC fines branch manager, firm over supervision failure

On August 24, 2015, a hearing panel of the Investment Industry Regulatory Organization of Canada accepted a settlement agreement, with sanctions, between IIROC staff, and Brian Douglas Bergen and Leede Financial Markets.

Bergen, along with Leede Financial Markets, admitted they failed to effectively exercise supervisory responsibilities over registered representative Grant Matthews. In addition, Bergen admitted he failed to report a client complaint.

Specifically, as the settlement agreement states, Brian Douglas Bergen and Leede admitted to the following violations:

Brian Douglas Bergen

• between approximately December 2008 and May 2012, while the Branch Manager at Leede Financial Markets, Bergen failed to properly supervise registered representative Grant Patrick Matthews, contrary to IIROC Rules 38.4 (a) and 2500; and
• between approximately July and August 2010, Bergen failed to report a client complaint with respect to a client, contrary to IIROC Rules 3100(I) and 29.1.

Leede Financial Markets

• between approximately December 2008 and May 2012, Leede, through the actions of its designated Tier 2 compliance officer, failed to properly supervise registered representative Grant Patrick Matthews, contrary to IIROC Rules 38.1, 38.4, 1300.2 and 2500.

Pursuant to the settlement agreement, Brian Douglas Bergen and Leede have agreed to the following penalties:

Brian Douglas Bergen

• payment of a fine in the amount of $50,000;
• prohibition from acting in a supervisory capacity for one year;
• successful rewrite of the Branch Manager’s Course, in the event of a return to a supervisory role; and
• payment of costs in the amount of $2,500.

Leede Financial Markets Inc.

• payment of a fine in the amount of $90,000; and
• payment of costs in the amount of $10,000.

Read the settlement agreement.

Staff

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