Laurentian Bank Securities faces a $200,000 fine from IIROC after failing to comply with registration training requirements and not adequately supervising a dealing rep.
Laurentian Bank failed to take reasonable steps to ensure that three of its representatives were proficient through a 90-day training program, says IIROC, the self-regulatory body for investment dealers.
Two reps registered with IIROC in July and August 2011 without completed their 90-day training periods, IIROC says. Then, in December 2011, another IIROC registration for a third representative was attempted, again without completing the 90-day training.
Additionally, Laurentian did not have a system allowing adequate supervision of the business activities of one of the representatives, IIROC says.
The bank neglected to “ensure compliance with one of the conditions of registration imposed on [the] representative by the Approval Committee of the Québec District Council, namely periodic visits to his place of work, contrary to IIROC Dealer Member Rule 38.1,” IIROC says.
The violations happened between 2011 and 2013. In addition to the fine, Laurentian agreed to pay costs of $20,000.
The bank fully cooperated with the IIROC investigation, which was initiated in December 2012.