Just three days after the Ontario Securities Commission upheld charges against a trading officer who was fined for undisclosed financial dealings in client accounts, the regulator has changed its course and stayed the decision, pending the outcome of a hearing in early May.

On Monday, the OSC announced that it had upheld the decision by the Investment Industry Regulatory Organization of Canada to impose a fine of $350,000 against Julius Caesar Phillip Vitug — a former registered rep with TD Waterhouse Canada Inc. and Blackmont Capital Inc.

But the following day, Vitug requested that the commission stay the decision on an interim basis.

On Thursday, the OSC announced that it has agreed to temporarily stay the decision, pending the outcome of a hearing to be held on May 5, 2010.

“Upon considering the submissions of counsel for Vitug, counsel for IIROC and [OSC] staff, the commission is of the opinion that it is in the public interest to make this order,” the OSC said.

In July 2009, an IIROC hearing panel had imposed the fine, plus costs of $80,000, against Vitug and permanently banned him from approval in any category under IIROC’s rules. The panel found that between 2003 and 2005, Vitug had an undisclosed financial interest and undisclosed financial dealings in accounts, including accounts held at another member firm, of two of his clients.

IE