VANCOUVER, June 1, 2012 /CNW/ - Jory Capital Inc. and Patrick Michael
Cooney sought to appeal the decisions of IIROC Hearing Panels dated
January 28, 2011, February 14, 2012, and April 11, 2012. On May 4,
2012, a consent order was issued by the Manitoba Securities Commission
ordering, among other things, the following:
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1)
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The registration of Jory be subject to the following terms and
conditions:
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(a)
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by May 14, 2012, or such later date as IIROC may permit, Jory shall
establish and maintain an independent Advisory Committee ("the
Committee");
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(b)
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by May 14, 2012, or such later date as IIROC may permit, Jory shall
engage the services of a qualified external compliance consultant (the
"Monitor") acceptable to IIROC staff to conduct an independent review
of Jory's compliance and supervision policies and procedures and to
provide comprehensive recommendations for ongoing compliance practices;
and
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(c)
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until an Ultimate Designated Person and a Chief Compliance Officer have
been approved for Jory by IIROC, the Monitor shall, in conjunction with
Jory's Operations Manager, perform the functions that would be
performed by the UDP and CCO.
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2)
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The registration of Jory will be cancelled on the date upon which, among
other things, one of the following occurs, or on such later date as
IIROC staff may permit:
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(a)
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Jory fails to engage the Committee by May 14,2012;
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(b)
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Jory fails to maintain the Committee;
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(c)
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Jory ceases to have a Carrying Broker;
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(d)
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Jory's Risk Adjusted Capital is negative and is not restored to a
positive value within five business days, or such later date as IIROC
staff may permit; and
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(e)
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Jory fails to engage or ceases to have the services of a Monitor that is
acceptable to IIROC staff.
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3)
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The Enhanced Business Restrictions which prohibited Jory from:
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(a)
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opening any new branch offices;
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(b)
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hiring any new Registered Representatives or investment representatives;
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(c)
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opening any new customer accounts; or
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(d)
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changing its inventory position in any material respect.
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be forthwith removed upon:
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(a)
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Jory securing a capital injection of $200,000; and
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(b)
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Jory engaging a Monitor as set out above.
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4)
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The IIROC Hearing Panel's Penalty Decision dated January 28, 2011 be
varied and ordered as follows:
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(a)
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Jory shall not pay a fine, but shall pay costs in the amount of $50,000;
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(b)
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Mr. Cooney shall pay a fine of $100,000 but shall not pay any costs; and
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(c)
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Mr. Cooney will be prohibited from being approved in any IIROC approval
category with the exception of Registered Representative, Investment
Representative, Executive and Director, or any equivalent registration
categories under the Manitoba Securites Act, any of which can be held
concurrently.
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The Manitoba Securities Commission's Notice of Hearing, dated April 23,
2012 is available at: http://www.msc.gov.mb.ca/legal_docs/investigation/hearings/jory.pdf.
The Manitoba Securities Commission's Order dated May 4, 2012 is
available at:
http://msc.gov.mb.ca/legal_docs/orders/jory_cooney.pdf.
The IIROC Hearing Panel's decision regarding penalty dated January 28,
2011 is available at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=1D36D46105334E908543BAFC1929F446&Language=en.
The IIROC Hearing Panel's decision regarding Enhanced Business
Restrictions dated February 14, 2012 is available at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=1D55E4B5540646459555F10D2A4A3991&Language=en.
The IIROC Hearing Panel's decision regarding Enhanced Business
Restrictions dated April 11, 2012 is available at:
http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=BB4609896CB646FA8AB15D3416AC4BE9&Language=en.
Documents related to ongoing IIROC enforcement proceedings - including
Reasons and Decisions of Hearing Panels - are posted on the IIROC
website as they become available. Click here to search and access all IIROC enforcement documents.
* * *
IIROC is the national self-regulatory organization which oversees all
investment dealers and trading activity on debt and equity marketplaces
in Canada. Created in 2008 through the consolidation of the Investment
Dealers Association of Canada and Market Regulation Services Inc.,
IIROC sets high quality regulatory and investment industry standards,
protects investors and strengthens market integrity while maintaining
efficient and competitive capital markets.
IIROC carries out its regulatory responsibilities through setting and
enforcing rules regarding the proficiency, business and financial
conduct of dealer firms and their registered employees and through
setting and enforcing market integrity rules regarding trading activity
on Canadian equity marketplaces.
IIROC investigates possible misconduct by its member firms and/or
individual registrants. It can bring disciplinary proceedings which may
result in penalties including fines, suspensions, permanent bars,
expulsion from membership, or termination of rights and privileges for
individuals and firms.
All information about disciplinary proceedings relating to current and
former member firms is available in the Enforcement section of the IIROC website. Background information regarding the
qualifications and disciplinary history, if any, of advisors currently
employed by IIROC-regulated firms is available free of charge through
the IIROC AdvisorReport service. Information on how to make investment dealer, advisor or
marketplace-related complaints is available by calling 1.877.442.4322.
