This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Mike Caswell

The Canadian Investment Regulatory Organization has imposed six-month suspensions and $135,000 in fines on two former Stifel Nicolaus Canada Inc. employees for disclosing confidential information. CIRO says that the pair told hedge fund managers about potential financings before they happened. The managers then traded based on the information, in one instance entering orders within 20 minutes that generated a $97,000 gain, according to CIRO.

The penalties for the men are contained in settlement agreements that CIRO released on Wednesday, Dec. 4, and on Friday, Dec. 6. The largest penalty went to Robert Weir, who agreed to pay $75,000 to settle the matter, plus $5,000 in CIRO's costs. The second employee, Jason Beales, has agreed to pay $60,000 plus $5,000 in CIRO's costs. The two men have admitted to the violations, at least for the purposes of settling the case.

The penalties come just months after Stifel agreed to pay $500,000 for failing to supervise employees and their handling of confidential information. CIRO said that the firm allowed its employees to work remotely in the early days of COVID-19, but did not properly supervise them. As with many firms, Stifel was regularly involved in offerings of shares in public companies, with employees discussing the sales of millions of shares and the associated details.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS