The Investment Industry Regulatory Organization of Canada (IIROC) has fined Toronto-based Scotia Capital Inc. $150,000 for failing to comply with its trading supervision obligations.

On Tuesday, an IIROC hearing panel accepted a settlement agreement, with sanctions, between IIROC staff and Scotia Capital.

Specifically, the firm admitted to the following violations:

  • between June 2009 and November 2011, it failed to have adequate policies and procedures in place or failed to implement those policies and procedures to prevent and detect potential wash trades; and
  • between June 2009 and December 2010, it failed to adequately implement its policies and procedures to prevent and detect potential artificial pricing transactions relating to high closing.

Scotia Capital agreed to pay a $150,00 fine and $10,000 in costs.

IIROC formally initiated the investigation into the firm’s conduct in May 2011.