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.

The IIROC disciplinary case that you have been assigned is as follows:

On or around May 23, 2015, client A opened an account with the Investment Dealer ABC Securities Inc., through the Respondent.

Client A is an immediate family member of the Respondent and is a Related Person under the meaning of the Income Tax Act.

Since around April 25, 2015, the Respondent had acted as Power of Attorney for client A, under a general mandate to that effect.

The Respondent did not declare the situation to his employer, either when the account was opened or afterwards.

In no case was ABC Securities informed in a timely manner, nor did it approve this arrangement between the Respondent and client A.

Moreover, the Respondent allegedly proceeded to borrow money from client A, between March and October 2019:

March 27, 2019 $2,000

April 24, 2019 $2,000

June 7, 2019 $1,300

October 18, 2019 $1,000

Total : $6,300

The Respondent did not declare this situation to his employer. 15. Consequently, ABC Securities was not informed in a timely manner nor did it approve these loans made to the Respondent by client A.

1. Discuss what caused the events described in this case to lead to this disciplinary process.

2. Identify the IIROC rules that have been violated.

3. 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.