The applicant, a small investment firm, sought a hearing and review of an IIROC Hearing Panel decision that imposed a $100,000 fine and $10,000 in costs for breaches of Universal Market Integrity Rules (UMIR) 5.2 and 7.1.
The applicant argued the penalty was unreasonable and disproportionate.
The Ontario Securities Commission found that the IIROC Hearing Panel erred in principle by failing to apply the principle of proportionality, as the $100,000 fine was disproportionate to the firm's small size and limited regulatory capital.
The Commission substituted its own decision, reducing the fine to $30,000 while maintaining the $10,000 costs order.
