Rep reprimanded by regulator and charged $200,000 by firm

A Canadian Investment Regulatory Organization (CIRO) hearing panel has issued its reasons for reprimanding Haywood Securities Inc. registered representative, Graham Darren Moore, rather than fining or suspending Moore, after Haywood Securities itself charged Moore $150,000 for breaching his gatekeeper responsibilities and $50,000 for using an unauthorized third-party communication application to conduct trading.

The hearing panel later agreed with the firm that Moore failed to fulfill his gatekeeper responsibilities when he facilitated trades of a public issuer by a group of related clients who were potential insiders. He is also being sanctioned for accepting trading instructions from a person who was not authorized in writing to provide such instructions, and for taking orders, and ordering his assistant to take orders for trades using WhatsApp. “Mr. Moore did not preserve his communications. As a result, the firm did not have the ability to properly supervise the transactions,” the reasons for decision states. 

Heightened supervision for at least two years 

Working in the securities industry since 1995 and registered with the Vancouver branch of Haywood Securities since January 2016, the firm also ordered Moore to serve a one-month suspension, to successfully rewrite the Conduct and Practice Handbook course and agree to heightened supervision for at least two years. He is also required to attend quarterly meetings with the firm’s ultimate designated person and chief compliance officer, or both, to review his business. Moore also agreed to pay the costs of the firm’s internal investigation.

Robust internal disciplinary measures 

“The hearing panel acknowledged the robust internal disciplinary measures taken by Mr. Moore’s firm and Mr. Moore’s prompt compliance with those measures,” the reasons for decision states.

“In addition, through Haywood, Moore initiated contact with and provided substantial assistance to another regulatory agency regarding potential misconduct by market participants. In determining the appropriate regulatory sanctions for this matter, enforcement staff gave Moore credit for the substantial assistance he gave Haywood’s investigation, the significant internal discipline measures and the proactive assistance he provided to the other regulatory agency. Absent any of these factors, enforcement staff would have sought greater sanctions,” the settlement agreement adds.

In addition to the reprimand, CIRO ordered Moore to also pay CIRO’s costs in the amount of $7,500.