Another dealer rep sanctioned for sharing potentially confidential information
The Canadian Investment Regulatory Organization has fined a former managing director of Stifel Nicolaus Canada Inc. $60,000 and banned him from approval in any capacity with the regulator for six months.
Jason Adam Beales accepted CIRO’s findings that he disclosed potentially confidential information to multiple hedge fund clients in contravention of Investment Dealer Rule 1400.
The matter relates to incidents in April 2020 when Beales disclosed details of Stifel’s agreement with another Dealer Member to divest a portion of its holdings in an issuer via a block trade. One hedge fund client utilized this information for short-selling trades without Beales’ knowledge, potentially profiting by approximately $97,218.
Beales had been a registered representative of Stifel between December 2019 and July 2022, reporting to the firm’s head of sales and trading. Between December 2019 to December 2020 that role was held by Robert Russell Weir who was also banned for six months and fined $75,000 recently for disclosing potentially confidential information with a hedge fund client.
Beales had been a dealer rep with other firms dating back to 2008 but is not currently registered in the securities industry in any capacity. He has not previously been the subject of IIROC or CIRO disciplinary proceedings.
As well as the financial penalty and ban, Beales must pay $5,000 in costs and complete CIRO’s Conduct and Practices Handbook Course before re-approval.
