Firm fined $150,000 for failed trade supervision

On June 18, 2013, a hearing panel of the Investment Industry Regulatory Organization of Canada accepted a settlement agreement, with sanctions, between IIROC staff and Scotia Capital.

Scotia Capital admitted it failed to comply with its trading supervision obligations. Specifically, the firm admitted to the following violations:

(a) Between June 2009 and November 2011, it failed to have adequate policies and procedures in place or failed to implement those policies and procedures to prevent and detect potential wash trades; and

(b) Between June 2009 and December 2010, it failed to adequately implement its policies and procedures to prevent and detect potential artificial pricing transactions relating to high closing.

Pursuant to the settlement agreement, Scotia Capital agreed to a fine in the amount of $150,000. It also agreed to pay costs in the amount of $10,000.

The agreement and decision will be made available at www.iiroc.ca.

IIROC formally initiated the investigation into Scotia Capital Inc.’s conduct in May 2011. The conduct occurred when Scotia Capital Inc. was an IIROC-regulated firm. Scotia Capital Inc. is still an IIROC-regulated firm.

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