Canaccord agrees to IIROC penalties of $1.1M over retail account supervision

VANCOUVER – The Investment Industry Regulatory Organization of Canada says Canaccord Genuity Corp (TSX:CF) has agreed to fines and other penalties totalling more than $1.1 million related to allegations of inadequate supervision of retail account activity.

The IIROC says Canaccord will pay a fine of $750,000, plus an additional $310,000 for disgorged commissions. It will also contribute $50,000 towards the IIROC’s investigation costs.

The settlement arose from allegations of failing to adequately monitor first-level supervision of such accounts and by failing to have effective second-tier supervision from 2005 through 2010.

The IRROC also alleged that between June 2009 andFebruary 2001 Canaccord refused to adopt procedures to reasonably assure itself that its clients who purchased private placements were “accredited investors.”