The Investment Industry Regulatory Organization of Canada a fined a former rep with Canaccord Capital Inc. $20,000 for permitting clients to participate in a private placement of shares in an investment firm owned by his spouse.
On March 29, an IIROC hearing accepted a settlement agreement between IIROC staff and Alain Laroche.
The violation occurred when Laroched was a registered representative with the Quebec City branch of Canaccord Capital (now Canaccord Genuity).
Specifically, Laroche admitted that around October 2007 he permitted several of his clients to participate in a private placement of shares in an investment firm owned by his spouse, all unrecorded and without the knowledge of Canaccord.
As part of the settlement, Laroche agreed to pay a $20,000 fine and $5,000 in costs. He also agreed to a suspension from approval with IIROC in any capacity for a period of one month.
IIROC formally initiated the investigation into Laroche’s conduct in September 2009. He is no longer a registrant with an IIROC-regulated firm.