The Investment Industry Regulatory Organization of Canada has fined two Calgary men for conducting business as portfolio managers without being registered as such.

On December 6, an IIROC hearing panel accepted a settlement agreement between IIROC staff and James Darren Delcourt and James Alexander Stewart. Delcourt and Stewart admitted that they conducted their business consistent with registration as portfolio managers without being registered as such and failed to use due diligence to ensure the acceptance of orders was within the bounds of good business practice.

In the settlement agreement, the duo admitted that from March to June 2009, while registered representatives they:

  • engaged in business conduct or practice which is unbecoming or detrimental to the public interest, in that they conducted their business consistent with registration as Portfolio Managers without being registered as such; and
  • Failed to use due diligence to ensure that the acceptance of orders was within the bounds of good business practice.

Delcourt and Stewart agreed to the following penalty, imposed upon each respondent:
a global fine of $30,000; Disgorgement of commissions of $14,747.78;

  • the requirement to re-write the Conduct and Practices Handbook (CPH);
  • the requirement to be subject to close supervision for 3 months.

Delcourt and Stewart also each agreed to pay costs in the amount of $3,000.

IIROC formally initiated the investigation into the pair’s conduct in March 2010. The violations occurred when they were registered representatives with the Calgary branch of Mackie Research Capital Corp. Delcourt and Stewart continue to be registered in the same capacity at the same firm.