Subject: LAW
CIRO Hearing Panel issues Reasons for Decision in the matter of Pollitt & Co.
TORONTO, Nov. 29, 2023 /CNW/ - Following a settlement hearing held on October 24, 2023, a hearing panel of the Investment Dealer Division of the Canadian Investment Regulatory Organization (CIRO) issued reasons for its decision to accept a settlement agreement, with sanctions, between Enforcement Staff and Pollitt & Co. Inc. (Pollitt & Co).
The hearing panel's reasons for decision, dated November 21, 2023, are available at:
In the settlement agreement, Pollitt & Co admitted to the following violations:
a) between January and December 2020, Pollitt & Co failed to have and maintain risk adjusted capital greater than zero at all times and failed to immediately notify CIRO when its risk adjusted capital was less than zero, contrary to Dealer Member Rule 17.1;
b) between January and December 2020, Pollitt & Co failed to establish and maintain adequate internal controls, contrary to the internal control policy statements in Dealer Member Rule 2600 and Dealer Member Rule 17.2A;
c) between January and December 2020, Pollitt & Co failed to keep and maintain a proper system of books and records, contrary to Dealer Member Rule 17.2 and Dealer Member Rule 200.2;
d) between September 2018 and November 2022, Pollitt & Co failed to report information about all transactions in debt securities, contrary to Dealer Member Rule 2800C and Investment Dealer Rule 7200 (in effect January 1, 2022); and
e) between May 2021 and January 2022, while designated in Early Warning Level 2, Pollitt & Co made payments to an affiliate, without obtaining written consent from CIRO, contrary to Dealer Member Rule 30.3 and Section 4135 of the Investment Dealer Rules (in effect January 1, 2022).
In its reasons for decision, the hearing panel confirmed the sanctions imposed on the respondent. In particular, Pollitt & Co is required to pay a fine of $175,000. Pollitt & Co also agreed to pay costs in the amount of $15,000.
Pollitt & Co is a CIRO-registered Dealer Member. It is subject to Terms and Conditions imposed on its membership on February 3, 2023.
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) and the Mutual Fund Dealer Rules (for mutual fund dealers) is available in the Enforcement section of the CIRO website.
Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by CIRO-regulated firms (Investment Dealer Division) is available free of charge through the AdvisorReport service. Information on how to make investment 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.
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)
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