Toronto (Ontario), January 12, 2024 – Following a settlement hearing held under the Investment Dealer and Partially Consolidated Rules on December 15, 2023, in Toronto, Ontario, a hearing panel of the Canadian Investment Regulatory Organization (CIRO) found that between October 2018 and December 2022, HSBC Securities (Canada) Inc. (HSBC Securities) failed to establish and maintain a system of controls and supervision to ensure that client fee agreements were accurately recorded in its fee management systems and that clients were charged appropriately.
The hearing panel issued its reasons decision on January 2, 2024, which are available at:
In its reasons for decision, the hearing panel confirmed a fine in the amount of $52,500.
HSBC Securities is also required to pay costs in the amount of $5,000.
HSBC Securities is a CIRO-registered firm with its head office located in Toronto, Ontario.
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All information about disciplinary proceedings relating to current and former member firms and individual registrants under the Investment Dealer and Partially Consolidated Rules (for investment dealers), the Mutual Fund Dealer Rules (for mutual fund dealers) and the Universal Market Integrity Rules (UMIR) is available on CIRO's website.
Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by CIRO-regulated investment firms is available free of charge through the AdvisorReport service. Information on how to make dealer, advisor or marketplace-related complaints is available by calling 1-877-442-4322.
CIRO investigates possible misconduct by its member firms and individual registrants. It can bring disciplinary proceedings which may result in sanctions including fines, suspensions, permanent bars, expulsion from membership, or termination of rights and privileges for individuals and firms.
The Canadian Investment Regulatory Organization (CIRO) is the national self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada’s debt and equity marketplaces. CIRO is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians’ trust in financial regulation and the people managing their investments. For more information, visit www.ciro.ca.
Other Notices associated with this Enforcement Proceeding:
12/08/23CIRO to Hold a Settlement Hearing for HSBC Securities (Canada) Inc.Type: Enforcement NoticeSubtype: Hearing
01/12/24CIRO Hearing Panel issues Reasons for Decision in the matter of HSBC Securities (Canada) Inc.Type: Enforcement NoticeSubtype: Decision