The Investment Industry Regulatory Organization of Canada has fined Clark Alexander Squires, a managing partner at Brant Securities Inc. in Toronto, $20,000 for violating the Universal Market Integrity Rules.

In the September 21 settlement agreement, Squires admitted that he failed to transact his business in a manner that was both open and fair when he made sell order recommendations based on information that was not generally available to other market participants. As part of the agreement, he agreed to pay a fine in the amount of $20,000 and costs of $5,000.

Specifically, admitted that on Feb. 11, 2009, he failed to transact business openly and fairly and in accordance with just and equitable principles of trade when trading on a marketplace by entering sell orders for three clients in securities of Canadian Superior Energy Inc.

As a director of Canadian Superior, Squires learned certain corporate information that was not broadly disseminated. At a Canadian Superior board meeting, he became aware of legal advice that the information was “not material” for a press release, according to the settlement agreement.

Squires believed he was not restricted from recommending sell orders of the company’s shares. “[Mr. Squires] took no further independent steps to determine whether trading … was appropriate and in accordance with just and equitable principles of trade in the circumstances,” says the settlement agreement, which also states Squires did understand that the information could become material.

The share price fell sharply in value the day after Squires’ clients sold their shares. Brant cancelled the trades in Squires’ clients’ accounts and notified IIROC of the trading activity and cancellations that same day.

IIROC began the investigation into Squires’ conduct in February 2009. Squires is still employed at Brant.

IE