November 4, 2021 (St.John’s, Newfoundland and Labrador) – Following a disciplinary hearing held on October 28, 2021, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) found that Joan McCarthy was liable of having falsified signatures and appropriated funds from her clients’ accounts. She also failed to cooperate with an IIROC investigation by refusing to provide documents and failing to attend an interview with Enforcement Staff.
The Hearing Panel’s reasons for the decision on liability and sanctions will be made available to the public at www.iiroc.ca.
Specifically, the Hearing Panel found that Mrs. McCarthy committed the following violations:
- Between 2006 and 2019, Mrs. McCarthy falsified signatures and appropriated funds from her clients’ accounts, contrary to Dealer Member Rule 29.1 and Rule 1400 of the Consolidated Rules (after September 1, 2016); and
- Mrs. McCarthy failed to cooperate with an IIROC investigation by refusing to provide documents and failing to attend an interview with Enforcement Staff, contrary to section 8104 of the Consolidated Rules.
IIROC formally initiated the investigation into Mrs. McCarthy’s conduct in June 2019. The violations occurred while she was a Registered Representative with the St. John’s branch of MD Management Ltd., an IIROC-regulated firm. Mrs. McCarthy is no longer a registrant with an IIROC-regulated firm.
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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.
Other Notices associated with this Enforcement Proceeding:
04/30/21IIROC Begins Disciplinary Action Against Former Newfoundland and Labrador Investment Advisor Joan McCarthyType: Registration Review HearingSubtype: Hearing
07/29/21IIROC to Hold Disciplinary Hearing for Former Newfoundland and Labrador Investment Advisor Joan McCarthyType: Enforcement NoticeSubtype: Hearing
01/06/22IIROC Sanctions Former Newfoundland and Labrador Investment Advisor Joan McCarthyType: Enforcement NoticeSubtype: Decision