(Vancouver, British Columbia) - May 16, 2023 – On May 10, 2023 a hearing panel of the Investment Dealer Division of the New Self-Regulatory Organization of Canada (New SRO) accepted a Settlement Agreement, with sanctions, between Enforcement Staff and Martin Danielak.
Martin Danielak admitted to conduct involving entering orders that he ought reasonably to have known would create, or could reasonably be expected to create, a false or misleading appearance of trading activity or interest in the purchase or sale of the security and failing to comply with his Dealer Member’s policies and procedures.
Specifically, Mr. Danielak admitted to the following violations:
- Between October 2019 and November 2019, the Respondent entered orders for the shares of Citation Growth Corp., that he ought reasonably to have known would create, or could reasonably be expected to create, a false or misleading appearance of trading activity or interest in the purchase or sale of the security, contrary to UMIR 2.2(2); and
- Between October 2019 and November 2019, the Respondent failed to comply with his Dealer Member’s policies and procedures by communicating with his client by way of text messages using unapproved third-party communication applications, contrary to Investment Dealer Rule 1400.
Pursuant to the Settlement Agreement, Mr. Danielak agreed to the following sanctions:
- A fine of $21,000;
- Disgorgement for commissions of $105;
- A two-month suspension from access to a marketplace regulated by the Corporation; and
- To re-write the Conduct and Practices Handbook.
Mr. Danielak also agreed to pay costs in the amount of $2,500.
This case was resolved by Early Resolution Offer, which granted a 30% reduction on the fine Enforcement Staff otherwise would have sought. The Respondent has admitted the misconduct described above reducing the length of time required to investigate this matter and agreed to resolve this matter in a timely manner.
The Early Resolution Offers promote the efficient resolution of cases at an earlier point in the enforcement process, while also ensuring investor harm is addressed through voluntary acts of compensation and the implementation of remedial measures by firms. Find out more here.
The Settlement Agreement is available at:
Danielak, Martin – Settlement Agreement
The hearing panel’s decision will be made available at www.iiroc.ca.
The Investment Dealer Division formally initiated the investigation into Mr. Danielak’s conduct in June 2020. The conduct occurred while the respondent was a Registered Representative with the Calgary branch of Richardson Wealth Limited, at the time an IIROC-regulated firm. The Respondent is still within the industry in a registered capacity, at the Vancouver branch of Raymond James Ltd.
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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 New SRO-regulated firms (Investment Dealer Division) is available free of charge through the AdvisorReport service. Information on how to make investment dealer, advisor or marketplace-related complaints is available by calling 1 877 442-4322.
New SRO investigates possible misconduct by its member firms and individual registrants. It can bring disciplinary proceedings which may result in sanctions including fines, suspensions, permanent bars, expulsion from membership, or termination of rights and privileges for individuals and firms.
New Self-Regulatory Organization of Canada (New SRO) is the national self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada’s debt and equity marketplaces. New SRO is carrying on the regulatory functions of the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA), and is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians’ trust in financial regulation and the people managing their investments. For more information, visit www.newselfregulatoryorganizationofcanada.ca.
Other Notices associated with this Enforcement Proceeding:
04/21/23New SRO to Hold a Settlement Hearing for Martin DanielakType: Enforcement NoticeSubtype: Hearing