A hearing panel of the Investment Dealers Association of Canada has fined Union Securities Ltd. $25,000 for failing to enforce the use of foreign exchange rates by its employees.

In a written decision released on April 8, the panel found that between November 2000 and January 2001 inclusive Union failed to establish internal controls with respect to enforcing the use of foreign exchange rates by its employees.

The Hearing Panel dismissed two other allegations:

  • that Union failed to properly supervise the trading activity in a client’s accounts; and
  • that Union failed to disclose information on a Uniform Termination Notice in respect of a registered representative and the fact that the rep had engaged in manipulation of foreign exchange rates in order to disguise losses incurred as a result of his trading activity, when Union knew or should have known that the conduct was a reason for the rep’s termination.