April 1, 2022 (Toronto, Ontario) – On March 29, 2022, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and Howard Tsao.
Mr. Tsao admitted that he engaged in an outside business activity and failed to cooperate with Enforcement Staff.
Specifically, Mr. Tsao admitted to the following violations:
- Between June 2017 and February 2020, Tsao engaged in an outside business activity by serving as Treasurer and Board Member for three condominium corporations for which he was also the Registered Representative and misled his Dealer Member about the activity, contrary to Dealer Member Rule 18.14 and Consolidated Rule 1400; and
- Between March 2020 and October 2020, Tsao failed to cooperate with Enforcement Staff who were conducting an investigation, contrary to section 8104 of Consolidated Rule 8100.
Pursuant to the Settlement Agreement, Mr. Tsao agreed to the following penalty:
- a monetary sanction of $30,000, which includes disgorgement in the amount of $13,229.35; and
- a permanent ban from registration in any capacity with IIROC.
Mr. Tsao also agreed to pay costs in the amount of $5,000.
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. Tsao’s conduct in May 2020. The first violation occurred while he was a Registered Representative with the Vaughan branch of RBC Dominion Securities Inc., an IIROC-regulated firm. The second alleged violation occurred while he was no longer a registrant with an IIROC-regulated firm. Mr. Tsao is currently not registered 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:
09/28/21IIROC Begins Disciplinary Action Against Former Toronto Investment Advisor Howard TsaoType: Enforcement NoticeSubtype: Hearing
01/25/22IIROC to Hold Disciplinary Hearing for Howard TsaoType: Enforcement NoticeSubtype: Hearing
03/23/22IIROC to Hold a Settlement Hearing for Howard TsaoType: Enforcement NoticeSubtype: Hearing