A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has fined a Toronto broker $97,000 for violating IIROC rules.

On May 1, the panel accepted a settlement agreement between IIROC staff and Wayne White, in which White has admitted to receiving monetary benefits from a third party for his role in certain dealings without his employer’s knowledge.

White admitted that he:

• participated in and facilitated his clients’ participation in various off-the-books private placements without the knowledge or consent of his employer;

• engaged in personal financial dealings with his clients when he participated in a private placement distribution with a group of his clients without the knowledge or consent of his employer; and

• received monetary benefits from a third-party for his role in furthering his and his clients’ investments in various private placements, without his employer’s knowledge or consent.

IIROC began its investigation into White’s conduct on Sept. 19, 2005. The violations occurred in 2003 and 2004 when he was a Registered Representative Options (Retail) with the Toronto branch of HSBC Securities (Canada) Inc.

As part of the settlement, White agreed to a fine of $97,000, 45 day suspension from registration, and close supervision for a period of one year and the successful completion the Conduct and Practices Handbook examination within six months of any subsequent registration.

White also agreed to pay $15,000 to cover a portion of IIROC staff’s costs.

White is currently registered as a Registered Representative Options (Retail) at the Toronto head office of Brant Securities Limited.

IE