A hearing panel of the Investment Industry Regulatory Organization of Canada has permanently banned a Winnipeg options representative for sharing a financial interest in an account with a client.

The Investment Dealers Association of Canada formally initiated the investigation into the conduct of James Alexander Percival on Nov. 7, 2006.

The violations occurred when Percival was a registered representative with the Winnipeg branch of National Bank Financial Ltd.

On Sept. 16, 2008, the IIROC panel accepted a settlement agreement between IIROC staff and Percival.

Percival admitted that he violated association by-laws between January 2006 and July 2006 by:

• sharing a financial interest in an account with a client;
• asking the client not to disclose his financial interest in the client account; and
• entering into an agreement to compensate a client for account losses.

As penalty, the hearing panel permanently prohibited Percival from approval in any registration capacity with the IDA/IIROC.

Percival is no longer a registrant with an IIROC-regulated firm.

The hearing panel issued its reasons and decision on June 30, 2009.

IE