One of RIM’s biggest critics hit with two-year suspension and heavy fine
Northern Securities Inc. chief executive Vic Alboini, one of RIM’s biggest critics, has been suspended for two years by the Investment Industry Regulatory Organization of Canada. He has also been permanently banned as an “ultimate designated person” at an investment dealer and fined $625,000.
Looking into allegations stemming from 2008, an IIROC panel ruled that Mr. Alboini, who was the ultimate designed person at dealer Northern Securities,
“engaged in a trading practice which improperly obtained access to credit for his client… and in doing so risked the capital”
of both Northern Securities and its carrying broker.
The regulator revealed the penalties on Monday, following hearings in May and October. It was not immediately clear what the impact would be on Northern Securities and Mr. Alboini’s role there.
The regulator found that between 2006 and 2010, Mr. Alboini and Northern’s chief compliance officer Frederick Earl Vance
“repeatedly failed to ensure that NSI (Northern) corrected deficiencies found in three business conduct compliance reviews and one trading conduct review.”
By doing so, they engaged in “conduct unbecoming or detrimental to the public interest,” IIROC said.
IIROC said Mr. Vance
“failed to adequately supervise Mr. Alboini’s trading activity”
involving Northern clients including Jaquar Financial Corp.
Mr. Vance was given a three-month suspension in any supervisory capacity, fined $50,000, and ordered to pay $50,000 toward the costs of the regulatory action.
Mr. Alboini was ordered to pay costs of $125,000.
In the past year, Mr. Alboini became an outspoken critic of Research In Motion Ltd.
