On July 24, 2012, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and CIBC World Markets Inc. (CIBC).
CIBC admitted that from May 2005 to October 2008, it failed to effectively exercise its supervisory responsibilities by allowing options trades that were not suitable for two clients contrary to IIROC Dealer Member Rules 1300.2(a) and 2500 (formerly IDA Regulation 1300.2(a) and Policy No.2).
Pursuant to the Settlement Agreement, CIBC agreed to the penalty of a fine to IIROC in the amount of $85,000
CIBC also agreed to pay costs to IIROC in the amount of $10,000.
The panel’s decision, together with the Settlement Agreement, will be made available at www.iiroc.ca.
Documents related to ongoing IIROC enforcement proceedings – including Reasons and Decisions of Hearing Panels – are posted on the IIROC website as they become available. Click here to search and access all IIROC enforcement documents.
IIROC formally initiated the investigation into CIBC’s conduct in August 2010. CIBC is still an IIROC-regulated firm.
