The Investment Industry Regulatory Organization of Canada (IIROC) has fined trading firm optionsXpress Canada Corp. $65,000 for failing to correct deficiencies after promising it would do so.
On Dec. 19, 2012, an IIROC hearing panel accepted a settlement between IIROC staff and optionsXpress.
The firm admitted that between April 2008 and January 2012, it failed to correct deficiencies identified during a Business Conduct Compliance Examination despite representing that it would do so and in doing so: failed to maintain a proper supervisory system; and failed to observe high standards of ethics and conduct in the transaction of its business and engaged in business conduct or practice which is unbecoming or detrimental to the public interest.
optionsXpress agreed to pay fine of $65,000 and $2,500 in costs.
IIROC formally initiated the investigation into optionsXpress’ conduct in August 2012.
The transfer of accounts from optionsXpress Canada Corp. to Toronto-based online brokerage Virtual Brokers, a division of BBS Securities Inc., was completed on Dec. 8, 2012.