An Investment Industry Regulatory Organization of Canada (IIROC)hearing panel has approved a settlement agreement between IIROC staff and Sasha Jacob, former CEO of Jacob Securities Inc. in Toronto, following his admission that he neglected to oversee the activities and individuals at the firm.
As part of the agreement, Jacob will be suspended from acting in the capacity of “ultimate designated person” for three years and fined $100,000. Jacob has also agreed to pay costs totalling $10,000.
According to the settlement, Jacob failed to ensure that individuals who served on his behalf acted in accordance with the regulations set by IIROC and his firm from November 2013 to December 2015.
In particular, the IIROC hearing panel found that there wasn’t sufficient due diligence to ensure that conflicts of interest are identified and resolved. The hearing panel also heard that there was a lack of “daily supervisory reviews” of retail and institutional account trading.
In addition, Jacob neglected to file his registration with IIROC in time from 2006-09.
The investigation into Jacob’s conduct was launched in October 2014. His IIROC membership was suspended in December 2015.
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