A registered rep has won his argument before an Investment Dealers Association hearing panel over whether he should have to attend an investigative interview with an investigator from a U.S. regulator sitting in.

A disciplinary hearing was held Dec. 13 over an alleged violation of IDA by-laws by Brian Gruson, now a rep with Desjardins Securities Inc., but at the time in question he was with Toronto’s First Associates Inc. The IDA alleged that he refused to attend an interview and give information regarding an investigation being conducted by the IDA.

Gruson argued he was prepared to attend the interview but ultimately didn’t on the basis that he objected to the presence of a representative of the U.S. Securities and Exchange Commission at the meeting.

The IDA hearing panel upheld his argument, concluding that the SEC representative is not permitted to attend the IDA’s interview. However, Gruson is still required to attend an interview with IDA staff within 90 days of the date of the order.

It says that neglecting to do so will result in a $50,000 fine, a permanent ban on his registration with the IDA, and $5,000 in costs.