A former branch manager at a Quebec branch of National Bank Financial Inc. has been fined $30,000 by the Investment Industry Regulatory Organization of Canada for supervision-related violations.

On March 30, an IIROC hearing panel accepted a settlement agreement with Mario Bouchard. He admitted to four violations between 2004 and 2006, when he was branch manager, or a registered representative options (retail) at the Rouyn-Noranda branch of National Bank Financial.

Bouchard is no longer a registrant with an IIROC-regulated firm.

Two of the violations occurred in 2004, when IIROC found that Bouchard failed in his duties to supervise transactions made in the account of a client by a representative under his supervision. The transactions involved deposits of share certificates by an insider who was also a client of the Bouchard’s

Bouchard failed “to ensure that these transactions were within the bounds of good business practice, when he knew or should have known that the transactions could be an indicator of an activity or behaviour that was suspicious or contrary to the public interest,” IIROC said.

A third violation was Bouchard’s failure to track and keep a proper record of his daily supervision reviews and of his inquiries and their follow-up, with regard to the transactions.

Lastly, IIROC found that in 2006, Bouchard covered the losses of a client with his own funds, without knowledge of his firm. This represents business conduct “unbecoming or detrimental to the public interest,” IIROC said.

Bouchard faces a fine of $30,000 and costs of $3,500. He is also prohibited from approval from IIROC, in any capacity, for six months, and is permanently barred from approval as branch manager, assistant or co-branch manager, or in any other supervisory capacity.

In order to be re-approved, Bouchard must pass the Conduct and Practices Handbook examination, and must be closely supervised for 12 months.

IE