A hearing panel of the Investment Dealers Association of Canada (IDA) has imposed discipline penalties on Raymond James Ltd. for failing to adequately supervise RRSP accounts and transactions.

Following a settlement hearing, the panel considered, accepted a settlement agreement negotiated between staff of the IDA and Raymond James.

The firm admitted that between May 6, 2002 and Sept. 29, 2003, it facilitated purchases of shares of certain private companies in client RRSP accounts without having sufficient systems and procedures in place to ensure the adequate review and supervision of the transactions and by failing to ensure adequate account opening and transactional supervision in the client RRSP accounts.

The transactions in the client RRSP accounts were part of an RRSP stripping scheme.

The Ontario Securities Commission referred this matter to the IDA in March 2005.

For its misconduct, Raymond James Ltd. has been fined $140,000 and is required to pay $10,000 in costs.