October 19, 2022 (Montréal, Québec) – On October 14, 2022, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, including penalties, entered into between IIROC staff and National Bank Financial Inc.
Specifically, National Bank Financial Inc. has admitted to the following contravention:
- Between January 2015 and March 2018, National Bank Financial Inc. failed to set and maintain adequate internal controls concerning certain transactions related to trading errors in eighteen accounts and to options trading authorizations affecting four clients in 2015, contrary to Dealer Member Rules 17.2A and 2600.
Under the terms of the Settlement Agreement, National Bank Financial Inc. agrees to the following penalty:
- A fine in the amount of $250,000.
National Bank Financial Inc. also agrees to pay costs in the amount of $40,000.
The Settlement Agreement is available at:
National Bank Financial Inc. – Settlement Agreement
The Hearing Panel’s decision will be made available at www.iiroc.ca.
IIROC formally initiated the investigation into National Bank Financial’s conduct in May 2017. National Bank Financial Inc. is 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 32,000 or so 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:
09/02/22IIROC Will Hold a Settlement Hearing in the Matter of National Bank Financial Inc.Type: Enforcement NoticeSubtype: Hearing