A hearing panel of the Investment Industry Regulatory Organization of Canada has accepted a settlement agreement between the IIROC staff and Stephen Taub, IIROC said Wednesday.

The IDA formally initiated the investigation into Taub’s conduct in July 2001. The violations occurred when Taub was a registered rep with the Toronto branches of Brant Securities Ltd. and Research Capital Corp,, both IIROC-regulated firms.

In a settlement agreement approved by the IIROC hearing panel on January 18, Taub admitted he engaged in misconduct related to his trading activity for clients and his dealings with his member firm between November 1998 and June 2003.

Tuab agreed pay penalties and costs totalling $65,000. He also received a permanent ban from from receiving registration approval in any capacity with any dealer member of IIROC.

He is no longer a registrant with IIROC-regulated firms.

The IIROC hearing panel has not yet issued its reasons and decision.

In late August 2009, the Ontario Court of Appeal reaffirmed an SRO’s jurisdiction over its former members, overturning a decision by the Divisional Court of Ontario involving Taub and the Investment Dealers Association of Canada (now IIROC).

In the Taub case, the former registered rep had challenged the jurisdiction of the IDA when it brought disciplinary action against him in October 2005 — more than a year after he had resigned from his brokerage firm and from the IDA.

The Settlement Agreement is available at www.iiroc.ca.

IE