After setting aside one set of sanctions against investment dealer Credifinance Securities Limited, the Ontario Securities Commission has decided that the firm should face a new set of sanctions to be determined by a different hearing panel of the Investment Industry Regulatory Organization of Canada.

The Ontario Securities Commission released an order on Wednesday involving Credifinance and three of its former registered representatives: Georges Benarroch, Linda Kent and Majorie Ann Glover. In December, the OSC set aside sanctions that had been imposed by an IIROC hearing panel against the firm and former reps.

IIROC had found that Credifinance and its reps failed to properly perform their gatekeeper responsibilities in connection with trading in Credifinance client accounts, and improperly engaged in financial and business transactions with clients.

The IIROC hearing panel’s penalties included fines totalling $400,000, permanent expulsion for Credifinance and suspensions for the three former reps: Georges Benarroch, Linda Kent and Majorie Ann Glover.

In reviewing the decision, the OSC found that the reasons given by the IIROC panel for the sanctions were inadequate. The OSC noted that the sanctions imposed were considerably more severe than those initially sought by IIROC counsel, without adequate reasoning.

Following a hearing on January 11, the OSC determined that the matter should be remitted to a differently constituted IIROC hearing panel to determine the appropriate sanctions to be applied to the firm and the former reps.

IE