Rep to pay $40,000 for improper trading

On May 1, 2012, a hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a settlement agreement between IIROC staff and Daniel Lindsay Cuthbertson.

Cuthbertson admitted he parked shares, traded off-marketplace without approval and engaged in unauthorized trading.

Specifically, Cuthbertson admitted to the following violations: a) Between September and December 2008, he executed seven unauthorized trades, contrary to Dealer Member Rule 29.1; b) Between September and November of 2008, he parked stocks purchased for a retail client in the firm’s average price account and institutional accounts, and then misrepresented the true nature of those stock positions to his firm’s Chief Compliance Officer, contrary to Dealer Member Rule 29.1; and c) On October 6, 2008, he executed an off-marketplace trade without approval from Regulation Services, and above the market price, contrary to Dealer Member Rule 29.1.

Pursuant to the settlement agreement, Cuthbertson agreed to the following penalty: a) A $35,000 fine; b) A period of suspension from registration in any capacity with IIROC for 18 months; c) Successful completion of the Conduct and Practices Handbook examination; and d) Upon re-approval in any registered capacity with IIROC, a six-month period of close supervision.

Cuthbertson also agreed to pay costs in the amount of $5,000.00.

Read the decision here.

Staff

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