A hearing panel of the Investment Regulatory Organization of Canada (IIROC) accepted a settlement agreement sanctioning former registered representative, Howard Tsao, permanently barring him from registration after he engaged in outside business activity before failing to cooperate with IIROC enforcement staff during an investigation into his conduct.
In the settlement agreement, Tsao admitted he engaged in an outside business activity by serving as treasurer and board member for three condominium corporations for which he was also the registered representative, even after compliance staff at RBC Dominion Securities Inc. rejected his requests to have the outside business activity approved.
“Tsao advised his dealer member that he had resigned from three condominium boards for which he also acted as registered representative, when he had not,” IIROC staff writes in its settlement agreement with Tsao. “Tsao also failed to cooperate with staff’s investigation by not attending a scheduled interview.”
After several months of not responding to IIROC letters and telephone calls, Tsao phoned to tell enforcement staff at IIROC that he had been living outside of Canada since his termination from RBC DS in February 2020. “During this phone call, enforcement staff again advised of the virtual interview date. Tsao indicated that he did not plan on attending the interview because he did not intend to return to Canada and did not intend to seek registration with IIROC again. Tsao did not attend the scheduled interview or communicate with enforcement staff any further regarding his non-attendance.”
In November 2021, Tsao retained council and fully engaged in the proceeding. In addition to permanently banning Tsao from registration in any capacity with IIROC, the regulator also fined Tsao $30,000 and ordered him to pay costs in the amount of $5,000.
