A hearing panel of the Investment Industry Regulatory Organization of Canada has accepted a settlement agreement between IIROC staff and IPC Securities Corp.

IPC has admitted that its inadequate policies and procedures made it unable to effectively supervise retail clients who purchased securities under prospectus exemptions.

As part of the May 13 settlement agreement, IPC agreed to pay a fine of $65,000 and pay $10,000 toward staff costs.

In the agreement, IPC admitted it failed to establish and maintain adequate policies and procedures to ensure clients qualified as accredited investors (in accordance with provisions of the Ontario Securities Act) before assisting them in the purchase of exempt securities.

As a result of the investigation by IIROC staff, IPC has established more efficient policies and procedures to remedy these failings, according to the agreement.

The violations occurred between 2005 and 2008 and the Investment Dealers Association of Canada (now IIROC) began its investigation into IPC’s conduct on May 20, 2008..

The panel will issue its reasons and decision document will at a later date.