UPDATE 1-Canada activist shareholder Alboini suspended, fined

Tue Nov 13, 2012 4:06pm EST
 
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* Northern Securities CEO may not trade or deal for 2 years

* Fined C$625,000 after sanctioned for trading activity

* Northern applying for review of decision

By Cameron French

TORONTO, Nov 13 (Reuters) - Activist investor Vic Alboini, an outspoken critic of Research in Motion, has been suspended and fined by Canada's investment industry watchdog after he was found to have engaged in improper and risky trading.

In a decision released late on Monday, the Investment Industry Regulatory Organization of Canada (IIROC) imposed on Alboini a two-year suspension "in all capacities" (trading or dealing) and fines totaling C$625,000 ($624,200) for actions taken in his capacity as chief executive of Canadian dealer Northern Securities, a unit of Northern Financial Corp.

Alboini is also permanently banned from being an "ultimate designated person." A UDP oversees an investment dealer's compliance system and is often the firm's CEO.

IIROC found that in late 2008, Alboini "engaged in a trading practice which improperly obtained access to credit" for his client at the time, Jaguar Financial, "and in doing so risked the capital of both Northern Securities and its carrying broker." Alboini is also CEO of Jaguar.

He also failed to ensure that Northern Securities corrected deficiencies in its business conduct and trading practices, IIROC said.   Continued...