The Investment Industry Regulatory Organization of Canada has fined a pair of Vancouver brokers for failing to make “diligent inquiries” regarding client trading activity in Over-the-Counter Bulletin Board securities.
On November 30, an IIROC hearing panel in Vancouver accepted settlement agreements between staff of IIROC and Al-Nashir Jiwa and Matthew Douglas Hoffar.
In their settlement agreements, Jiwa and Hoffar admitted that during the period February 2007 to September 2007, they failed to adequately perform their roles as gatekeepers to the capital markets, by failing to make sufficiently reasonable or diligent inquiries in relation to client trading activity in certain Over-the-Counter Bulletin Board securities.
Jiwa agreed to pay a fine of $140,379 and costs of $10,000. In addition, he is suspended from approval in any registered capacity with IIROC for a period of three months.
Hoffar agreed to pay a fine of $50,000 and costs of $10,000. In addition, he is prohibited from seeking re-registration approval with any dealer member of IIROC for a period of three months.
IIROC formally initiated the investigation into the duo’s conduct in June 2008. The violations occurred when Jiwa and Hoffar were registered representatives at the Vancouver office of Haywood Securities. Jiwa continues to be employed with Haywood Securities. Hoffar is no longer a registrant with an IIROC-regulated firm.