A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has found that two British Columbia brokers failed in their roles as gatekeepers by facilitating manipulative or suspicious trading activity in several client accounts.
The violations occurred from April 2008 to March 2009 when Marco Myatovic was a registered representative with the Prince George, office of Canaccord Capital Corp. (now Canaccord Genuity Corp.) and when Doreen Lowe was a registered rep with the Vancouver office of Research Capital Corporation (now Mackie Research Capital Corporation).
A disciplinary hearing was held from Nov. 14, to Dec. 1, 2011.
In its decision dated July 31, the panel also dismissed an allegation of unauthorized trading by Lowe and an allegation that Myatovic failed to know his clients.
A separate hearing will be held to determine any penalities to be imposed on the two reps.
IIROC formally initiated the investigation into Myatovic’s conduct in August 2008 and Lowe’s conduct in February 2009.
Myatovic is no longer a registrant with an IIROC-regulated firm. Lowe is an IIROC registrant at the Vancouver office of Global Securities Corp.