IIROC impose penalties on NB investment dealer

FREDERICTON, NB- Following a penalty hearing held on September 7, 2016, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) imposed the following penalties on Robert Adrian Crandall:

(a) a prohibition on re-registering with IIROC for a period of five years;

(b) a fine of $150,000;

(c) a requirement to successfully re-write the Conduct and Practices Handbook exam as a condition of re-registration; and

(d) a period of strict supervision for 18 months should he return to the industry.

Mr. Crandall is also required to pay costs in the amount of $ 35,000. The penalty decision can be found at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=EBB2629F54324C82982C32F79B7174BF&Language=en

The violations

In an earlier decision dated May 26, 2016, the Hearing Panel found that Mr. Crandall had committed the following violations:

(a) Between July 2006 and June 2012, he engaged in excessive trading in the accounts of his client, which was not within the bounds of good business practices and was unsuitable for the client, contrary to IIROC Dealer Member Rule 1300.1 (o) and (q) (IDA Regulation 1300.1 (o) and (q) prior to June 1, 2008);

(b) Between July 2006 and June 2012, he engaged in unauthorized discretionary trading in the accounts of his client, without the accounts first having been approved as discretionary accounts, contrary to Dealer Member Rule 1300.4 (IDA by-law 1300.4 prior to June 1, 2008); and

(c) Between July 2007 and October 2010, he made unsuitable recommendations for the accounts of his client, contrary to Dealer Member Rule 1300.1(q) (IDA by-law 1300.1(q) prior to June 1, 2008).

IIROC formally initiated the investigation into Mr. Crandall’s conduct in July 2013. The violations occurred while he was a Registered Representative with the Fredericton branch of Wellington West Capital Inc. and its successor National Bank Financial, both IIROC-regulated firms at the relevant times. Mr. Crandall is no longer a registrant with an IIROC-regulated firm.
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IIROC is the national self-regulatory organization which 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 dealer firms and their registered employees and through setting and enforcing market integrity rules regarding trading activity on Canadian 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. – CNW

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