A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has fined Daniel Murray Trenholm $15,000 for failing to properly perform his role as a gatekeeper in the capital markets.

The IDA formally initiated the investigation into Treholm’s conduct in June 2006. The violations occurred when he was was a registered representative with the Halifax branches of Lynch Investments Ltd. and Acadian Securities Inc.

The IIROC panel held a disciplinary hearing on July 8, 9 and 10, 2009, in Halifax.

The panel found that during the period October 2001 to February 2004:

• Trenholm facilitated “certain transactional activity in five related accounts without making diligent inquiries to ensure the legitimacy of the transactions in circumstances which should have called the transactional activity into question because it was peculiar, suspicious or appeared to be consistent with market manipulation, deception or other improper market relatedactivity,” and

• Trenholm “accepted trading instructions in respect of four client accounts from a person not authorized in writing to provide such instructions for those accounts.”

The panel issued its Decision and Reasons on September 6. In a separate penalty decision dated November 24, the panel imposed the following penalty against Trenholm:

• suspension for a period of three years;
• fine of $15,000;
• costs of $15,000; and
• re-write the CPH examination prior to re-approval.

Trenholm is currently a registrant with Jennings Capital Inc., an IIROC-regulated firm.

The panel’s decisions and reasons are available at www.iiroc.ca.