January 6, 2022 (St. John’s, Newfoundland and Labrador) – Following Enforcement Staff Written Sumbissions on sanctions filed on November 30, 2021, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) imposed the following penalty on Joan McCarthy:
- Contravention 1
- Permanent bar from approval in any capacity or access to a Marketplace;
- Permanent bar from employment in any capacity by a Regulated Person; and
- Fine of $950,000.
- Contravention 2
- Fine of $50,000.
- The permanent bar is effective as of this date. The fines and costs are payable within 30 days of the date of this decision
Mrs. McCarthy is also required to pay costs in the amount of $103,522.14.
The penalty decision can be found at:
In an earlier decision dated October 28, 2021, the Hearing Panel found that Mrs. 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.
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
11/04/21IIROC Hearing Panel Finds Former Newfoundland and Labrador Investment Advisor Joan McCarthy LiableType: Enforcement NoticeSubtype: Decision