Enforcement Notice - Decision - IIROC Imposes $4M Fine on TD Waterhouse Canada Inc.

TORONTO, March 23, 2020 /CNW/ - Following a disciplinary hearing held on December 11 and 13, 2019, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) fined TD Waterhouse Canada Inc. $4 million for failing to include position cost information within the quarterly retail client account statements for certain securities positions.

The Hearing Panel's decision, dated March 17, 2020, is available at: http://www.iiroc.ca/documents/2020/90bd0140-3d2f-4fbe-9b07-e8e2e7718d16_en.pdf

Specifically, the Hearing Panel found that TD Waterhouse Canada Inc. committed the following violation:

(a)        Since December 31, 2015, TD Waterhouse Canada Inc. has failed to include position cost information within the quarterly client account statements for certain securities positions, contrary to the position cost calculation and disclosure requirements set out in clauses 200.2(d)(ii)(F) of Rule 200.

The Hearing Panel imposed the following sanction on TD Waterhouse Canada Inc.:

(a)        A fine of $4,000,000.

TD Waterhouse Canada Inc. is also required to pay costs in the amount of $28,497.00.

IIROC formally initiated the investigation into TD Waterhouse Canada Inc.'s conduct in April 2017. TD Waterhouse Canada Inc. is an IIROC-regulated firm.

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.

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IIROC is the pan-Canadian self-regulatory organization that 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 more than 170 Canadian investment dealer firms and their more than 29,000 registered employees, the majority of whom are commonly referred to as investment advisors. IIROC also sets and enforces market integrity rules regarding trading activity on Canadian debt and 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