A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a settlement agreement between IIROC staff and TD Waterhouse Canada Inc.

Pursuant to the agreement, the TD Waterhouse admitted that In the period January to September 2006, the discount brokerage failed to have written procedures and systems in place to review customer trading and accounts in relation to the receipt of speculative over-the-counter securities and the detection of suspicious activity.

The hearing panel imposed a fine in the amount of $25,000, and required the TD Waterhouse to pay costs in the amount of $8,500.

The Investment Dealers Association of Canada formally initiated the investigation into the TD Waterhouse’s conduct on April 6, 2006.

The hearing panel will issue and make available to the public its reasons and decision at a later date. The Settlement Agreement is available at
http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=3B2B0029B58F43299987EB028
854C634&Language=en.