A hearing panel of the Investment Dealers Association of Canada has fined Canaccord Capital Corp. and two of its co-branch managers for failing to ensure the effective supervision of activities at the company’s Burrard Street branch in Vancouver.
Following a settlement hearing on November 23, the hearing panel considered, reviewed and accepted a settlement agreement negotiated between Canaccord, Donald Grant Macdonald and Paul Peter DiPasquale, and staff of the IDA’s enforcement department.
Canaccord admitted that between November 1998 and June 2001, it failed to have proper systems, procedures and personnel in place to ensure that effective supervision of the activities at its Burrard Street branch was achieved, and it failed to properly supervise the activities of John Frederick Pryde, a former registered representative at Canaccord.
Macdonald and DiPasquale admitted that between July 1998 and June 2001, while registered in supervisory positions at Brink Hudson & Lefever Ltd. and subsequently Canaccord, they failed to effectively supervise the activities of Pryde.
For their misconduct:
- Canaccord is fined $500,000;
- Macdonald is fined $125,000 and has agreed to never apply for registration in any capacity with an IDA Member firm; and
- DiPasquale is fined $100,000, suspended from acting as a Branch Manager for a period of six months, must successfully re-write and pass the Branch Manager’s Course, and is permanently prohibited from acting in any higher supervisory position, other than Branch Manager, with an IDA Member firm.
In addition, Canaccord, Macdonald and DiPasquale must pay $25,000 in costs.
In September 2005, Pryde entered into a settlement with the IDA which permanently prohibited him from acting in any registered capacity with an IDA member firm and was ordered to pay $20,000 in costs.
For a complete summary of facts, please see IDA Bulletin 3589.