Decision Notice - CIRO Hearing Panel issues Reasons for Decision in the matter of Michel Bédard

MONTRÉAL, March 13, 2024 /CNW/ - Following a settlement hearing held pursuant to the Investment Dealer and Partially Consolidated Rules on February 20, 2024, a hearing panel of the Canadian Investment Regulatory Organization (CIRO) found that Michel Bédard:

1. 1. 1. made discretionary trades in the accounts of two clients without these accounts having been previously approved as discretionary accounts;
      2. falsely represented to his firm, through his written notes, that he had previously discussed these trades with the clients;
      3. failed to use due diligence to ensure that options traded in the account of one of his clients were suitable for the client;
      4. failed to use due diligence to ensure that the option trading strategy used for two of his clients was within the bounds of good business practice; and
      5. failed to provide pre-trade disclosure of charges to two of his clients before executing trades in their accounts.

The hearing panel's reason for decision, dated March 4, 2024 are available at:

Re Bédard 2024 CIRO 34

In its reasons for decision, the hearing panel confirmed the sanctions imposed on Michel Bédard. In particular:

1. 1. 1. disgorgement of $226,492 representing the commissions he received;
      2. a global fine of $150,000; and
      3. a suspension of the registration with CIRO for a period of two months.

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

The violations occurred while Michel Bédard was a Registered Representative with Desjardins Securities Inc., where he continues to be employed in a registered capacity.

All information about disciplinary proceedings relating to current and former member firms and individual registrants under the Investment Dealer and Partially Consolidated Rules (for investment dealers), the Mutual Fund Dealer Rules (for mutual fund dealers) and the Universal Market Integrity Rules (UMIR) is available on CIRO's website. 

Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by CIRO-regulated investment firms is available free of charge through the AdvisorReport service. Information on how to make dealer, advisor or marketplace-related complaints is available by calling 1-877-442-4322.

CIRO investigates possible misconduct by its member firms and individual registrants. It can bring disciplinary proceedings which may result in sanctions including fines, suspensions, permanent bars, expulsion from membership, or termination of rights and privileges for individuals and firms.

The Canadian Investment Regulatory Organization (CIRO) is the national self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada's debt and equity marketplaces. CIRO is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians' trust in financial regulation and the people managing their investments. For more information, visit www.ciro.ca.

SOURCE Canadian Investment Regulatory Organization (CIRO)