Your group has been assigned a disciplinary case that either has been or is currently being dealt with by the IIROC. Carefully read all the relevant details of your case. Refer to all the material that we have studied so far in the CPH course, as well as other relevant information that you learned in previous securities related courses at the college. Discuss what caused the events described in this case to lead to this disciplinary process. Identify the IIROC rules that have been violated. Be sure to discuss how the (alleged) offender should have acted/behaved in their particular situation to avoid the action being taken by the IIROC. The IIROC disciplinary case that you have been assigned is as follows: The Respondent was a registered representative with IIROC from February 10, 1998, until February 24, 2016. 5. During this period, the Respondent was, among others, employed with ABC Securities (ABC), until his dismissal on February 24, 2016. Since February 24, 2016, the Respondent is no longer employed with any IIROC Dealer Member. On January 28, 2016, the client LC contacted the Respondent by telephone to have the latter purchase shares in Rona Inc. (Rona) for his account, for a value of $30,000. At around 13:10 that same day, the Respondent therefore proceeded to purchase 2,500 shares in Rona on behalf of his client LC, at an average cost of $11.81 per share. At around 13:20, the Respondent proceeded to purchase 5,000 Rona shares for his own account, at an average cost of $11.81 per share. At around 14:15, the Respondent had a discussion with his client LC, during which the latter allegedly informed him of the reasons why he had decided to purchase Rona shares at that time. In addition to the explanations of the client LCs checks and analyses of Rona, one of the reasons invoked by the latter is that he had learned that a due diligence audit of Rona had allegedly been conducted recently. Until that moment, the Respondent had never, since 2015, purchased Rona shares for his own account, nor recommended the purchase of this security to his clients. The client DB The Client DB On January 29, 2016, at a prescheduled meeting with his client DB, the Respondent recommended to the latter that he purchase shares in Rona. During this meeting, the Respondent and DB communicated with LC, as the latter was better able to answer some of DBs questions on this investment opportunity. During this discussion, LC mentioned that there were apparently a few rumours circulating about the issuer Rona. DB ultimately accepted the Respondents recommendation, who proceeded that same day to purchase 4,000 shares at an average cost of $11.99 per share. The clients MB and GO The Clients MB and GO Still on January 29, 2016, the Respondent met with his client GO in his office. GO is MBs spouse and has an Authorization to Trade in her account. At this prescheduled meeting, the Respondent recommended the purchase of Rona shares to GO. The Respondent proceeded that same day to purchase 1,700 shares in GOs TFSA account, at an average cost of $12.29 per share. The Respondent also purchased 1,700 shares in MBs TFSA account, at an average cost of $12.30 per share, in accordance with the instruction given in this regard by GO, pursuant to his Authorization to Trade in his spouses account. For both GO and MB, the cost of purchasing these Rona shares represented, at the time, the maximum contribution permitted in their respective TFSA accounts. The client DG The Client DG On February 2, 2016, the Respondent met with his client DG at the latters home. During this prescheduled meeting, the Respondent recommended the purchase of Rona shares to DG. The Respondent proceeded that same day to purchase 2,000 shares, at an average cost of $11.67 per share. The February 3, 2016, announced. The February 3, 2016 Announcement On the morning of February 3, 2016, Lowes Inc.s offer to purchase Rona was publicly announced. The Rona share price, which had closed at $11.77 the day before, stood at $23.44 when the markets opened on February 3, 2016. That same day, after checking with ABC Compliance, the Respondent proceeded to sell the Rona shares purchased previously by himself and his clients LC, DB, GO, MB and DG.