VANCOUVER _ The Investment Industry Regulatory Organization of Canada says
Canaccord Genuity Corp (
TSX: T.CF,
Stock Forum) has agreed to fines and other penalties totalling more than $1.1 million related to allegations of inadequate supervision of retail account activity.
The IIROC says Canaccord will pay a fine of $750,000, plus an additional $310,000 for disgorged commissions. It will also contribute $50,000 towards the IIROC's investigation costs.
The settlement arose from allegations of failing to adequately monitor first-level supervision of such accounts and by failing to have effective second-tier supervision from 2005 through 2010.
The IRROC also alleged that between June 2009 and February 2001 Canaccord refused to adopt procedures to reasonably assure itself that its clients who purchased private placements were ``accredited investors.''
Canaccord shares were down 1.3% to $6.08 Friday, leaving a market cap of $620.7 million, based on 102 million shares outstanding. The 52-week range is $7.93 and $4.89.