The Investment Industry Regulatory Organization of Canada has suspended Northern Securities Inc. chief executive Vic Alboini for two years. Alboini has also been permanently banned as an “ultimate designated person” at an investment dealer and fined $625,000.
IIROC panel ruled, after looking into allegations stemming from 2008, Alboini, who was the ultimate designed person at dealer Northern Securities, “engaged in a trading practice which improperly obtained access to credit for his client… and in doing so risked the capital” of both Northern Securities and its carrying broker.
Between 2006 and 2010, it was found by the regulator that Alboini and Northern’s chief compliance officer Frederick Earl Vance “repeatedly failed to ensure that NSI (Northern) corrected deficiencies found in three business conduct compliance reviews and one trading conduct review.” By doing so, they engaged in “conduct unbecoming or detrimental to the public interest,” IIROC said.
IIROC said Vance “failed to adequately supervise Mr. Alboini’s trading activity” involving Northern clients including Jaquar Financial Corp., a prime investor of Research In Motion.
Vance was given a three-month suspension in any supervisory capacity, fined $50,000, and ordered to pay $50,000 toward the costs of the regulatory action. Alboini was ordered to pay costs of $125,000.