MONTRÉAL, Dec. 22, 2016 /CNW/ - On December 8, 2016, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and Samuel Kloda.

Mr. Kloda admitted that he failed to ensure that securities were suitable for a client, that he failed to use due diligence to remain informed of the essential facts relative to a client, to have made an excessive number of transactions in a client's accounts and that he engaged in personal financial dealings with a client.

Specifically, Mr. Kloda admitted to the following violations:

a)

Between August 3, 2009 and December 16, 2014, Mr. Kloda failed to use due diligence to ensure that his recommendations to buy, sell and/or hold securities were suitable for his client, contrary to IIROC Dealer Member Rule 1300.1(q);

b)

Between August 2009 and December 2014, Mr. Kloda failed to use due diligence to learn and remain informed of the essential facts relative to his client, contrary to IIROC Dealer Member Rule 1300.1(a);

c)

Between January 1 and December 31, 2011, Mr. Kloda engaged in conduct unbecoming by trading excessively in a client's accounts with the intention of generating additional commissions, contrary to IIROC Dealer Member Rule 1300.1(o) and IIROC Dealer Member Rule 29.1; and

d)

Between January 19, 2004 and July 16, 2007, Mr. Kloda engaged in personal financial dealings with one of his clients by:

a.

signing a partnership agreement with the client regarding a private placement;

b.

transferring shares to his client; and

c.

borrowing money from this client.

All without the knowledge and consent of his Dealer Member firm, contrary to Dealer Member Rule 29.1.

 

Pursuant to the Settlement Agreement, Mr. Kloda agreed to the following penalties:

a)

A three-year suspension of his registration with IIROC; and

b)

A fine in the amount of $9,000.

 

Mr. Kloda also agreed to pay costs in the amount of $1,000.

The Settlement Agreement is available at: http://www.iiroc.ca/Documents/2016/c0514d26-0211-4baf-a747-c38538c081bd_en.pdf.   

The Hearing Panel's decision dated December 8, 2016 is available at: http://www.iiroc.ca/Documents/2016/c9efe311-c58c-4549-b1b8-2809600c23f7_en.pdf.

Documents related to ongoing IIROC enforcement proceedings – including Reasons and Decisions of Hearing Panels – are posted on the IIROC website as they become available. Click here to search and access all IIROC enforcement documents.

IIROC formally initiated the investigation into Mr. Kloda's conduct in November 2013. The conduct occurred while he was a Registered Representative with the Montréal branch of Mackie Research Capital Corporation, an IIROC-regulated firm. Mr. Kloda is no longer a registrant with an IIROC-regulated firm.

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IIROC is the national self-regulatory organization which oversees all investment dealers and their trading activity in Canada's debt and equity markets. IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while supporting healthy Canadian capital markets. IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of dealer firms and their registered employees and through setting and enforcing market integrity rules regarding trading activity on Canadian equity marketplaces.

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, permanent bars, expulsion from membership, or termination of rights and privileges for individuals and firms.

All information about disciplinary proceedings relating to current and former member firms is available in the Enforcement section of the IIROC website. Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by IIROC-regulated firms is available free of charge through the IIROC AdvisorReport service. Information on how to make investment dealer, advisor or marketplace-related complaints is available by calling 1 877 442-4322.

SOURCE Investment Industry Regulatory Organization of Canada (IIROC) - General News