Rep opposes shift to virtual enforcement

The respondent in an Investment Industry Regulatory Organization of Canada (IIROC) enforcement proceeding is asking the Ontario Securities Commission (OSC) to uphold his expectation of an in-person hearing.

The OSC will hold a hearing on Oct. 9 to consider a motion from Bardya Ziaian, a former registered rep and UDP at BBS Securities Inc., who is seeking an order that the IIROC proceeding against him be held in a live hearing, rather than a virtual one.

According to Ziaian’s application for an OSC review, the IIROC notice of hearing against him indicated that the hearing into whether he violated IIROC rules would be carried out in an oral hearing.

That hearing was originally scheduled for May, but has since been adjourned until October 13 and the IIROC panel has ruled that it should be carried out as a virtual hearing.

In his application to the OSC, Ziaian said that the panel “erred in law, proceeded on incorrect principles and/or overlooked material evidence” in making its decision to proceed with an electronic hearing.

Among other things, the application said that the panel ignored the evidence that a socially distanced in-person hearing is feasible, and that an electronic hearing “would significantly impair Mr. Ziaian’s ability to defend himself.”

Ziaian is alleged to have violated IIROC rules by engaging in improper trading ahead of new issues by “obtaining allocations of new issues for the purpose of proprietary trading and not for the purpose of allocating the new issues to…clients,” according to IIROC.

Ziaian has denied the allegations and declared that he would vigorously contest them.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.