The Investment Industry Regulatory Organization of Canada (IIROC) has fined CIBC World Markets Inc. $85,000 for failing to supervise the options trades of two clients.

On July 24, an IIROC hearing panel accepted a settlement agreement, with sanctions, between IIROC staff and 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.

CIBC agreed to pay a fine of $85,000 and $10,000 in costs.

IIROC formally initiated the investigation into CIBC’s conduct in August 2010.