A hearing panel of the Investment Industry Regulatory Organization of Canada has fined a former Blackmont Capital Inc. branch manager $50,000 for failing to adequately supervise the activities of two registered reps.

The violations occurred from June 2004 to March 2005 when Donnelly was a branch manager with the Toronto branch of Blackmont, an IIROC-regulated firm, formerly First Associates Inc.

In the settlement agreement approved by the hearing panel, Donnelly admitted that he failed to adequately supervise PV and AP, two Blackmont registered reps, and their client accounts.

The hearing panel fined Donnelly $50,000 and ordered him to pay $8,500 in costs.

As well, the panel issued a 45-day suspension of registration approval as branch manager or from acting in any compliance capacity with any IIROC member firm.

The Investment Dealer’s Association of Canada formally initiated the investigation into Donnelly’s conduct on Oct. 17, 2005.

Donnelly is still within the industry in a registered capacity with Raymond James Ltd., an IIROC-regulated firm.

The hearing panel will issue its reasons and decision at a later date.

The approved Settlement Agreement is available at www.iiroc.ca.

IE