Bank brokerages agree to pay $500,000 penalties for breaking trading rules

Bank brokerages agree to pay $500,000 penalties for breaking trading rules

TORONTO — Investment firms owned by three of Canada’s biggest banks have each agreed to pay a half-million-dollar penalty to settle charges of improperly trading shares.

The Investment Industry Regulatory Organization of Canada or IIROC says a hearing panel has accepted a settlement whereby RBC Dominion Securities, Scotia Capital Inc. and TD Securities Inc. will each pay a $500,000 penalty — plus costs of $10,000 each — to settle charges they traded in a security by means other than the entry of an order on a marketplace.

In an agreed statement, IIROC says the three Canadian firms chose to join lead underwriter Goldman Sachs & Co. LLC in May 2018 to help Royal Dutch Shell sell 97.6 million shares in Canadian Natural Resources Ltd.

Goldman Sachs was to acquire the shares under U.S. securities law on a “bought deal basis,” which meant the shares would be sold at a specified discount from the closing market price. Each member of the underwriting consortium agreed to market one quarter of the shares, with Goldman Sachs responsible for settling the trades and making the required U.S. regulatory disclosures.

However, Goldman Sachs discovered it was not in a position to deliver the shares to certain Canadian institutions which did not have accounts or required currency conversion and instead forwarded those shares to the three Canadian firms to settle the trades with their clients.

IIROC says those trades should have been entered in a marketplace unless they were covered by an exemption, thus violating a measure designed to increase visibility in the marketplace. It said the largely technical violation didn’t cause any harm to clients.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Whistle Stop Cafe owner Christopher Scott and his sister Melodie are serving sit-down customers in their Mirror diner to protest health restrictions that they say are unfair to restaurants and other small businesses. Photo by PAUL COWLEY/Advocate staff
Central Alberta restaurant owner defies health restrictions by serving diners

Whistle Stop Cafe owner says pandemic restrictions unfair to restaurants and small businesses

Alberta’s chief medical officer of health Dr. Deena Hinshaw said in her daily update on Monday that 362 new COVID cases have been identified and 7,200 tests done in the last 24 hours. (File photo)
COVID-19: UK variant may have entered broader community says Alberta health minister

25 cases of two variants identified in Alberta and one not linked to travel

An ice sculpture of a bee with a timely message was created near the Ross Street Patio. It’s party of a Downtown Business Association initiative to draw more people downtown to support local businesses. (Photo by LANA MICHELIN/Advocate staff).
Ice sculptures created to draw more people to downtown Red Deer

Three sculptures can be seem at various venues

Lab and x-ray technologist Rebecca Walter demonstrates a new digital radiographic X-ray unit funded by an $850,000 donation. The new unit is at the Sylvan Lake Advanced Ambulatory Care Service.
Photo contributed
New Sylvan Lake X-ray unit up and running

Radiographic x-ray unit made possible by $850,000 donation from Sylvan Lake couple

(Black Press file photo)
Police seeking suspects in Bowden armed robbery

Man was beaten and robbed of his wallet

Terrance Josephson of the Princeton Posse, at left, and Tyson Conroy of the Summerland Steam clash during a Junior B hockey game at the Summerland Arena in the early spring of 2020. (John Arendt - Summerland Review)
QUIZ: How much do you know about hockey?

Test your knowledge of Canada’s national winter sport

Toronto Argonauts head coach Scott Milanovich calls the plays on the sideline against Winnipeg Blue Bombers during the first half of CFL action in Winnipeg on August 14, 2015. THE CANADIAN PRESS/John Woods
Scott Milanovich steps down as Edmonton’s head coach to pursue opportunities in NFL

Scott Milanovich steps down as Edmonton’s head coach to pursue opportunities in NFL

Toronto Raptors guard Fred VanVleet (23) goes under Indiana Pacers guards Malcolm Brogdon (7) and Jeremy Lamb (26) to shoot during the second half of an NBA basketball game in Indianapolis, Monday, Jan. 25, 2021. THE CANADIAN PRESS/AP-Michael Conroy
Brogdon scores 36 points to lead Pacers over Toronto Raptors

Brogdon scores 36 points to lead Pacers over Toronto Raptors

FILE - In this Feb. 14, 2020, file photo, baseballs occupy a bucket after use during fielding practice during spring training baseball workouts for pitchers and catchers at Cleveland Indians camp in Avondale, Ariz. Major League Baseball is suspending all political contributions in the wake of last week's invasion of the U.S. Capitol by a mob loyal to President Donald Trump, joining a wave of major corporations rethinking their efforts to lobby Washington. “In light of the unprecedented events last week at the U.S. Capitol, MLB is suspending contributions from its Political Action Committee pending a review of our political contribution policy going forward,” the league said in a statement to The Associated Press on Wednesday, Jan. 13, 2021. (AP Photo/Ross D. Franklin, File)
Cactus League asks MLB to delay spring training due to COVID

Cactus League asks MLB to delay spring training due to COVID

Patrick Cantlay, right, bumps fists with Andrew Putman before teeing off on the first hole during the final round of The American Express golf tournament on the Pete Dye Stadium Course at PGA West Sunday, Jan. 24, 2021, in La Quinta, Calif. (AP Photo/Marcio Jose Sanchez)
Si Woo Kim holds off Cantlay to win The American Express

Si Woo Kim holds off Cantlay to win The American Express

Danielle Kang winds up to hit her tee shot on the fifth hole during the final round of the Tournament of Champions LPGA golf tournament, Sunday, Jan. 24, 2021, in Lake Buena Vista, Fla. (AP Photo/Phelan M. Ebenhack)
Jessica Korda rallies to beat Kang in playoff at LPGA opener, Henderson ninth

Jessica Korda rallies to beat Kang in playoff at LPGA opener, Henderson ninth

COVID-19 scare prompts cancellation of Canada-U. S. soccer scrimmage in Florida

COVID-19 scare prompts cancellation of Canada-U. S. soccer scrimmage in Florida

Coach John Herdman prepares for practice with Bev Priestman, a member of his coaching staff, ahead of Sunday's soccer game against the United States in the final of the CONCACAF Women's Olympic Qualifying Championship, in Houston on Saturday, Feb. 20, 2016.  THE CANADIAN PRESS/Neil Davidson
Priestman includes six uncapped players in her first roster as Canada soccer coach

Priestman includes six uncapped players in her first roster as Canada soccer coach

Major League Soccer Commissioner Don Garber speaks during the Major League Soccer 25th Season kickoff event in New York on February 26, 2020. The Major League Soccer season will run April 3 through Nov. 7 with the MLS Cup final scheduled for Dec. 11. How the season will look for the three Canadian teams remains up in the air, however. THE CANADIAN PRESS/AP, Richard Drew
MLS season to kick off April 3 but still no clarity on what awaits Canadian teams

MLS season to kick off April 3 but still no clarity on what awaits Canadian teams

Most Read