The day after Canada's trading regulator levelled tough sanctions against current and former executives at Northern Securities, the boutique investment dealer announced it will appeal the decision to the Ontario Securities Commission.
Late Monday the Investment Industry Regulatory Organization of Canada delivered a harsh decision that dinged Northern's chief executive officer Vic Alboini because he "improperly obtained access to credit for his client, Jaguar Financial Corporation, and in doing so risked the capital of both [Northern] and its carrying broker."
The chief compliance officer at the time, Fred Vance, was also penalized for failing to "adequately supervise" Mr. Alboini's trading activity and for not correcting deficiencies found in compliance reports. The chief financial officer during the same period, Douglas Chornoboy, was also penalized because he "filed or permitted to be filed inaccurate monthly financial reports which failed to account for leasehold improvement costs."
The ruling suspends Mr. Alboini for two years and permanently bans him from being an 'ultimate designated person.' He was also fined a total of $750,000. Mr. Vance was suspended from any supervisory capacity for three months and ordered to pay $100,000, while Mr. Chornoboy must pay $40,000. The dealer itself was also to pay $450,000 in total.
Other than noting it would appeal IIROC's decision to the OSC, which is the normal course for an appeal, Northern isn't saying much else because it "believes it important to respect the regulatory process by not making any specific comments at this time on the reasons for the Hearing Panel's decision and the sanctions."