A hearing panel of the Investment Industry Regulatory Organization of Canada has accepted a Settlement Agreement between IIROC staff and Toronto-based brokerage firm All Group Financial Services Inc.

In the agreement, All Group admitted that it failed to maintain risk-adjusted capital above zero, and that it reduced its capital by redeeming shares without prior consent.

Specifically, All Group admitted that:

> between April 22, 2009 and May 19, 2009, and during December 2009, the firm failed to maintain its risk-adjusted capital at a level greater than zero; and

> during July and August 2009, while in an early warning category, All Group reduced its capital by redeeming shares without obtaining prior consent from IIROC.

All Group accepted a penalty, which includes a $35,000 fine and $2,000 in costs.

IIROC formally began the investigation into the conduct of All Group in June 2009.

IE