January 10, 2022 (Toronto, Ontario) – Following a penalty hearing held on October 20, 2021, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) imposed the following penalty on Yonathan Chanoch Shields:
- Disgorgement of $64,054.80;
- Fine in the amount of $40,000;
- Suspension until October 20, 2022;
- Successfully re-write the CPH examination before he is re-registered; and
- Close supervision for one year from re-registration.
Mr. Shields is also required to pay costs in the amount of $35,000.
The penalty decision can be found at:
In an earlier decision dated July 20, 2021, the Hearing Panel found that Mr. Shields acted contrary to Dealer Member Rules 1300.1(a) and 1300.1(q). Mr. Shields failed to know nine of his clients, and implemented a high-risk options on futures trading strategy that was not suitable for these clients. The clients suffered a combined loss of approximately $1.2 million USD.
The Hearing Panel’s liability decision is available at:
IIROC formally initiated the investigation into Mr. Shields's conduct in April 2018. The alleged violations occurred while he was a Registered Representative with the Toronto branch of R.J. O'Brien & Associates Canada Inc., an IIROC-regulated firm. Mr. Shields 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:
08/23/19IIROC Begins Disciplinary Action Against Toronto Investment Advisor Yonathan Chanoch ShieldsType: Enforcement NoticeSubtype: Hearing
01/30/20IIROC to Hold Disciplinary Hearing for Toronto Investment Advisor Yonathan Chanoch ShieldsType: Enforcement NoticeSubtype: Hearing
03/12/20IN THE MATTER OF Yonathan Chanoch Shields – AdjournmentType: Enforcement NoticeSubtype: Hearing
07/15/20IIROC to Hold Disciplinary Hearing for Former Toronto Investment Advisor Yonathan Chanoch ShieldsType: Enforcement NoticeSubtype: Hearing
07/28/21IIROC Issues Disciplinary Decision for Former Toronto Investment Advisor Yonathan Chanoch ShieldsType: Enforcement NoticeSubtype: Decision
01/10/22IIROC Sanctions Yonathan Chanoch ShieldsType: Enforcement NoticeSubtype: Decision