On October 14, 2021, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and Michael Small.
Mr. Small admitted that he obtained loans from a client, who is a Related Person and for whom he also acted as Power of Attorney, without his employer’s approval.
Specifically, Mr. Small admitted to the following violations:
- Between March and October 2019, Mr. Small had personal financial dealings with a client, who is also a Related Person as defined in the Income Tax Act, when he borrowed money from the latter without his employer’s knowledge, contrary to Rule 43.2(3) of the IIROC Dealer Member Rules.
- From May 2015 to December 2019, Mr. Small acted as Power of Attorney for a client, who is also a Related Person as defined in the Income Tax Act, without his employer’s knowledge, contrary to Rule 43.2(5) of the IIROC Dealer Member Rules.
Pursuant to the Settlement Agreement, Mr. Small agreed to the following penalty:
- A fine in the amount of $20,000;
- The obligation to pass the Conduct and Practices Handbook (CPH) Course exam, in the event of re-registration;
Mr. Small also agreed to pay costs in the amount of $2,500.
The Settlement Agreement is available at:
The Hearing Panel’s decision will be made available at www.iiroc.ca.
IIROC formally initiated the investigation into Mr. Small’s conduct in March 2020. The conduct occurred while he was a Registered Representative with the Montréal branch of National Bank Financial Inc., an IIROC-regulated firm. Mr. Small is no longer a registrant with an IIROC-regulated firm.
All information about disciplinary proceedings relating to current and former member firms is available in the Enforcement section of the IIROC website.
Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by IIROC-regulated firms is available free of charge through the IIROC AdvisorReport service. Information on how to make investment dealer, advisor or marketplace-related complaints is available by calling 1 877 442-4322.
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.
IIROC is the pan-Canadian self-regulatory organization that 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 174 Canadian investment dealer firms of varying sizes and business models, and their more than 31,000 registered employees. IIROC also sets and enforces market integrity rules regarding trading activity on Canadian debt and equity marketplaces. For more information, visit www.iiroc.ca.
View the PDF from the Investment Industry Regulatory Organization of Canada (IIROC CA) here: Source link