IIROC fines National Bank Financial $110K for inadequate supervision

IIROC has fined National Bank Financial $110,000 for inadequate supervision, the SRO announced Wednesday.

An IIROC hearing panel accepted a settlement agreement with National Bank Financial, which agreed to pay a $110,000 fine and $10,000 in costs.

National Bank Financial admitted to failing to “establish and maintain a system that allowed adequate supervision of the business activities of at least one of its representatives” between June 15, 2009, and Nov. 30, 2011, an IIROC release said. This was contrary to IIROC Dealer Member Rules 38.1 and 2500 III.

Specifically, the firm failed in its supervision of a registered rep with several clients in two leveraged ETFs: Horizons BetaPro and ProShares Trust. The clients didn’t meet the investment profile stipulated by IIROC for such investments.

IIROC formally initiated the investigation into NBF’s conduct in June 2014. Read the full settlement agreement here.

Also read:

Why IIROC collected $700K more in fines last year

Horizons ETFs to terminate 2 volatility-focused funds

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.