In a settlement with the Bourse de Montréal Inc., Laurentian Bank Securities Inc. (LBS) is being sanctioned for weaknesses in its supervisory controls.
The exchange’s disciplinary committee approved a settlement between the exchange’s regulatory division and LBS, which includes a $50,000 fine.
The settlement stemmed from allegations that the firm violated the exchange’s rules by failing to establish adequate controls over its options trading activity.
“LBS did not regularly access and document, at least annually, the adequacy and effectiveness of such risk management and supervisory controls, policies and procedures,” the settlement noted — adding that the firm also didn’t provide the exchange with adequate evidence of its efforts to guard against manipulative trading.
The shortcomings were uncovered in a compliance review in 2018.
The firm, which resigned from the exchange in 2019 due to its low level of trading activity on the venue, cooperated with the Bourse’s investigation, the settlement noted. It also said that there was no evidence of intentional misconduct, and that there was no impact on clients, or the market.