IIROC Sanctions Friedberg Mercantile Group Ltd.

22-0048
Type: Enforcement Notice> Decision

Contact:

Andrew P. Werbowski
Director, Enforcement Litigation
Telephone:
Email:
Julia Mackenzie
Public Affairs Specialist
Telephone:
Email:

April 5, 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 Friedberg Mercantile Group Ltd.

Friedberg Mercantile Group Ltd. admitted to the following violations:

  1. failed to review and approve client accounts migrated from AVA Trade to FMGL adequately or on a timely basis prior to account opening and trading;
  2. failed to establish and maintain an adequate compliance system including written policies and procedures to ensure proper supervision of AVA Trade client accounts and trading on the AVA Trade Platform; and
  3. failed to establish and maintain a system to supervise the activities of AVA Trade agents,

contrary to IIROC Dealer Member Rules 38.1, 38.2 and IIROC Rule 3200.

Pursuant to the Settlement Agreement, Friedberg Mercantile Group Ltd. agreed to the following penalty:

  1. a fine of $223,000.

Friedberg Mercantile Group Lt. also agreed to pay costs of $25,000.

The Settlement Agreement is available at:

Friedberg Mercantile Group Ltd. – Settlement Agreement

The Hearing Panel’s decision will be made available at www.iiroc.ca.

IIROC formally initiated the investigation into Friedberg Mercantile Group Ltd.’s conduct in July 2020.

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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.

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Other Notices associated with this Enforcement Proceeding: