Toronto-based Stifel Nicolaus Canada Inc. has agreed to pay the Canadian Investment Regulatory Organization (CIRO) a $475,000 fine for sharing potentially confidential information with clients.<\/p>\n
“Stifel Nicolaus Canada Inc. admitted that it failed to enforce a system to supervise the activities of its employees regarding the receipt and containment of confidential information,” CIRO said in a release.<\/p>\n
In 2020, two of Stifel’s managing directors separately shared information with representatives of hedge fund clients. The information was potentially confidential and concerned proposed bought-deal block trade transactions for public issuers.<\/p>\n
The settlement agreement states the hedge fund clients used the information to enter short sell transactions with other dealers. Stifel was not, however, aware of the short sales.<\/p>\n
The first hedge fund earned potential profit of almost $377,000 from two sets of short sales, the agreement said. The second hedge fund earned potential profit of about $97,000 from its short sale.<\/p>\n
Stifel did not alert its compliance department to the communications between the Stifel employees and its hedge fund clients, and “[b]y failing to do so, Stifel failed to determine whether any necessary corrective action(s) were required,” the settlement agreement said.<\/p>\n
Stifel was fined $475,000 for failing to enforce a supervisory system regarding confidential information, and it agreed to pay $25,000 in costs.<\/p>\n
CIRO noted that Stifel has no prior regulatory enforcement record and that it co-operated with the investigation.<\/p>\n","protected":false},"excerpt":{"rendered":"
Info was used to enter into short sale transactions without Stifel’s knowledge<\/p>\n","protected":false},"author":73592,"featured_media":393467,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2312,2324],"tags":[2443,3440],"yst_prominent_words":[4771,7253,13216,18542,18937,23457,49602],"acf":[],"_links":{"self":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/491596"}],"collection":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/users\/73592"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/comments?post=491596"}],"version-history":[{"count":2,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/491596\/revisions"}],"predecessor-version":[{"id":491602,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/491596\/revisions\/491602"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/media\/393467"}],"wp:attachment":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/media?parent=491596"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/categories?post=491596"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/tags?post=491596"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/yst_prominent_words?post=491596"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}