British Columbia Securities Commission

British Columbia Securities Commission

October 28, 2011 16:30 ET

British Columbia Securities Commission: Commission Overturns IIROC Hearing Panel Decision

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 28, 2011) - A British Columbia Securities Commission panel has overturned an Investment Industry Regulatory Organization of Canada (IIROC) hearing panel decision that a B.C. registered dealer and a registered representative contravened IIROC's business conduct rules.

In September 2010, the IIROC hearing panel found that Blackmont Capital Inc. and Dean Shannon Duke contravened two IIROC rules when they agreed to share trading commissions with a third party. In December 2010, the panel imposed penalties on Blackmont and Duke.

After a hearing in September 2011, the BCSC panel found that the IIROC hearing panel had erred in law in making its findings, and set aside the IIROC hearing panel's decision and penalties.

The BCSC panel found the IIROC panel erred by making a finding with no supporting allegation in the notice of hearing, and by finding the respondents' contravention of another requirement to be conduct unbecoming when the contravention was merely technical. The panel said there was no evidence that the respondents' conduct was intentional, was motivated by dishonest intent or for an improper purpose, or was otherwise unethical. The panel said the respondents' conduct would not impair the public's trust of the industry.

In the same decision, the BCSC panel confirmed the penalty the IIROC hearing panel imposed on Duke for a separate contravention.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the decision on our website by typing Blackmont, Duke or 2011 BCSECCOM 490 in the search box. If you have questions, contact Richard Gilhooley, Media Relations, 604-899-6713.

Contact Information

  • British Columbia Securities Commission
    Richard Gilhooley
    604-899-6517 or (Canada) 1-800-373-6393