(August 17 – 14:40 ET) – The Ontario District Council of the Investment Dealers Association of Canada has imposed a discipline penalty on Taurus Capital Markets Ltd.
Taurus admitted that from March 8 to May 4 it engaged in business conduct that was unbecoming or detrimental to the public interest by failing to have adequate internal controls in place to handle the repatriation of its back office.
Prior to March 8, Taurus Capital was a Type 4 introducing broker in an introducing broker/carrying broker relationship with Canada Trust Securities Inc. (CTSI). On March 8, Taurus repatriated its back office from CTSI.
Taurus experienced problems with the repatriation. The problems revolved around unsettled trades due to high volumes during the relevant time, lack of experienced staff, and inadequate preparation, planning and execution of the repatriation, resulting in unresolved differences.
Taurus was filing daily reports with the IDA indicating unresolved differences. Following final calculations, Taurus reported that unresolved differences rose to $2,622,000.
Once the problem was identified, Taurus hired additional experienced staff, including a new CFO, to correct the deficiencies.
Taurus was fined $30,000 and is required to pay $1,500 towards the IDA’s costs.
For a complete Summary of Facts, please see IDA Disciplinary Bulletin No. 2757 at www.ida.ca.
-IE Staff