On March 6, 2017, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and Sasha Jacob.
Mr. Jacob admitted that he failed to supervise the activities and individuals at his then member firm, Jacob Securities Inc.
Specifically, Mr. Jacob admitted to the following violation:
From November 2013 to December 2015, Jacob as Ultimate Designated Person at Jacob Securities Inc. failed to supervise the activities of Jacob Securities Inc. and individuals acting on its behalf in order to ensure compliance with IIROC Rules, and failed to promote compliance with IIROC Rules by Jacob Securities Inc. and those acting on its behalf, contrary to IIROC Rules 38 and 2500.
In particular, Mr. Jacob’s failed to supervise in relation to:
The identification and rectification of conflicts of interest
Retail and institutional account trading
Timely registrations filings.
As a result of the supervisory failings and related compliance deficiencies at the firm, Jacob Securities Inc. was suspended from IIROC Membership on December 17, 2015.
Pursuant to the Settlement Agreement, Mr. Jacob agreed to the following penalties:
Global fine in the amount of $100,000 and
A suspension from acting as UDP for three years
Mr. Jacob also agreed to pay costs in the amount of $10,000.
The Settlement Agreement is available at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=D6ABD5CF2968494994EB56256085BC48&Language=en
The Hearing Panel’s decision 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 Mr. Jacob’s conduct in October 2014. The conduct occurred while he was the Ultimate Designated Person at Jacob Securities Inc. Mr. Jacob is no longer a registrant with an IIROC-regulated firm.
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IIROC is the national self-regulatory organization which 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 dealer firms and their registered employees and through setting and enforcing market integrity rules regarding trading activity on Canadian equity marketplaces.
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.
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.
SOURCE Investment Industry Regulatory Organization of Canada (IIROC) – General News
For further information: Enforcement Contact: Elsa Renzella, Vice-President, Enforcement, 416 943-5877, email@example.com; Media Contact: Karen Archer, Manager, Media Relations, 416 865-3046, firstname.lastname@example.org
CNW – March 10, 2017.