A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has found that Winnipeg-based Jory Capital Inc. and Patrick Cooney, Jory’s CEO, violated IIROC and Universal Market Integrity Rules by failing to monitor and maintain adequate risk adjusted capital.

The panel announced its findings in a decision dated November 12. The panel will meet at a future date to determine the appropriate penalty.

Specifically, the panel found that the following violations had been committed:

> Cooney failed to ensure that Jory design, establish, oversee and implement an effective financial compliance program to ensure proper compliance with regulatory requirements regarding maintenance of adequate risk adjusted capital (RAC), monitoring of regulatory capital and reliability of financial reporting;

> Cooney failed to ensure that Jory establish, maintain, and enforce a supervisory system;

> Cooney engaged in conduct unbecoming and detrimental to the public interest by failing to ensure that Jory fulfilled representations provided to IIROC; and

> Jory failed to maintain its RAC greater than zero on Jan. 24, 2008, during the months of June to October 2009 and again on April 14, 2010.

IIROC formally initiated the investigation into Cooney’s and Jory’s conduct on Sept. 28, 2009. The alleged violations occurred between 2005 and 2009 when Cooney was an approved person employed at the Winnipeg office of Jory. He continues to be registered in the same capacity at the same office.

IE