A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has accepted a settlement agreement entered into between IIROC staff and Montreal broker André Niding.

The Investment Dealers Association of Canada formally initiated the investigation into the Niding’s conduct on Feb. 8, 2007.

Under the IIROC settlement agreement accepted on Feb. 12., Niding acknowledged that between July 1998 and August 1999, while he was a registered representative with Midland Walwyn Capital Inc., he learned that, unbeknownst to Midland and in return for a receipt, a client had remitted cash in an amount equal to or greater than $23,750.00 for investment purposes, although he knew or should have known that this was contrary to written internal company policy and to the provisions of the Proceeds of Crime (Money Laundering) legislation in force.

Niding also allowed the client to invest monies remitted in cash by means of a third-party account, being a Canadian account in another name, although he knew or should have known that such procedure could be construed as a tax evasion scheme.

The IIROC hearing panel imposed fines of $15,000 and $10,000 respectively for first and second charges., and ordered Niding to pay $2,250 in commissions generated from the transactions made.

As well, Niding was placed on strict supervision for period of 6 months with supervisory reporting by the firm to IIROC on a monthly basis, must pass the Conduct and Practices Handbook examination during the six months following the effective date of the settlement agreement.

The hearing panel also ordered Niding to pay $10,000 in expenses.

Niding is currently employed as a registered representative with the Montreal branch of Richardson Financial Partners Ltd.

IE