A hearing panel of the Investment Industry Regulatory Organization of Canada has fined BMO Nesbitt Burns Inc. $300,000 for using improper sales literature.

On Oct. 10, a hearing panel of IIROC accepted a settlement agreement between IIROC staff and the brokerage firm.

Nesbitt Burns admitted that:

> from March 2003 to May 2005, it participated in the production of sales literature that failed to fairly present the potential risks of Univest II to a client;

> from March 2003 to July 2004, Nesbitt Burns issued and/or used sales literature that was not first approved by a partner, director, officer or branch manager; and

> from August 2004 to May 2005, Nesbitt failed to develop appropriate written policies and procedures for the review and supervision of sales literature.

The hearing panel imposed fines totaling $ 300,000 and and ordered Nesbitt Burns to pay costs in the amount of $20,000.

The Investment Dealers Association (IDA) formally initiated the nvestigation into the Nesbitt Burn’s conduct in April 2006.

IIROC says the hearing panel’s reasons and decision will be available in due course.