The Investment Industry Regulatory Organization of Canada has fined a former Edmonton registered rep $10,000 failing his gatekeeper obligations.

An IIROC has accepted a settlement agreement between IIROC staff and David Parkinson.

Parkinson admitted that he entered orders and trades on behalf of a client that he ought reasonably to have known would create or could reasonably be expected to create an artificial price for two TSXV securities. Parkinson had a gatekeeper obligation to be aware of and alert to manipulative and deceptive activity or potentially manipulative and deceptive activity.

Specifically, Parkinson admitted that from November 2007 to March 2008 while a registered rep at the Edmonton branch of CIBC World Markets Inc., he entered orders and executed trades on the TSX Venture Exchange for the shares of Covalon Technologies Inc. and Digger Resources Ltd. that he ought reasonably to have known would create or could reasonably be expected to create an artificial bid price and/or sale price for the securities.

Parkinson agreed a fine of $30,000, and a suspension from access to all IIROC-regulated marketplaces for a period of six months, effective from June 2010 when his employment was terminated and he ceased to be a registrant with an IIROC-regulated firm. He also agreed to pay $10,000 in costs.

IIROC formally initiated the investigation into Parkinson’s conduct in August 2008. He is no longer a registrant with an IIROC-regulated firm.