VANCOUVER, July 20, 2012 /CNW/ - Following a penalty hearing held on
February 23, 2012, a Hearing Panel of the Investment Industry
Regulatory Organization of Canada (IIROC) imposed the following penalty
on Carolann Steinhoff:
A 12-month suspension from registration;
After the expiration of her suspension, a condition that her future
re-registration be subject to strict supervision for a period of 12
months, and to close supervision for a further 12 months for a total
period of 24 months supervision;
A fine of $100,000;
Disgorgement of commissions of $6,813; and
A five-year prohibition from serving as a director or officer of a
Ms. Steinhoff is also required to pay costs in the amount of $20,000 and
is ineligible for reinstatement until she has paid the fine,
disgorgement and costs, and passed both the Partners Directors and
Officers Course and the Branch Managers Course.
The penalty decision dated July 4, 2012 can be found at http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=AF2D56111712480795F1CADE1DFF4661&Language=en
In an earlier decision on October 6, 2011, the panel found that Ms.
Steinhoff acted contrary to IIROC rules. Ms. Steinhoff was found to
have made discretionary purchases in a client's account, unsuitable use
of margin and unsuitable investments for clients. The panel also found
that when her firm's compliance department questioned her about the
purchases, Ms. Steinhoff told them that the topic of margin was raised
by the client, when she knew that was a false statement. The decision
on liability can be found at:
Documents related to ongoing IIROC enforcement proceedings - including
Reasons and Decisions of Hearing Panels - are posted on the IIROC
website as they become available. Click here to search and access all
IIROC enforcement documents.
On July 10, 2012, Ms. Steinhoff requested that the British Columbia
Securities Commission conduct a hearing and review of both the
liability and penalty decisions.
On July 12, 2012, the British Columbia Securities Commission ordered a
stay of the sanctions imposed against Ms. Steinhoff pending its hearing
and review of this matter.
IIROC formally initiated the investigation into Ms. Steinhoff's conduct
in November 2008. The violations occurred when she was a Registered
Representative in Victoria, British Columbia with Wellington West
Capital Inc., an IIROC-regulated firm. She is currently registered in
Victoria with Queensbury Securities Inc., an IIROC-regulated firm.
* * *
IIROC is the national self-regulatory organization which oversees all
investment dealers and trading activity on debt and equity marketplaces
in Canada. Created in 2008 through the consolidation of the Investment
Dealers Association of Canada and Market Regulation Services Inc.,
IIROC sets high quality regulatory and investment industry standards,
protects investors and strengthens market integrity while maintaining
efficient and competitive capital markets.
IIROC carries out its regulatory responsibilities through setting and
enforcing rules regarding the proficiency, business and financial
conduct of dealer firms and their registered employees and through
setting and enforcing market integrity rules regarding trading activity
on Canadian equity marketplaces.
IIROC investigates possible misconduct by its member firms and/or
individual registrants. It can bring disciplinary proceedings which may
result in penalties including fines, suspensions, permanent bars,
expulsion from membership, or termination of rights and privileges for
individuals and firms.
All information about disciplinary proceedings relating to current and
former member firms is available in the Enforcement section of the IIROC website. Background information regarding the
qualifications and disciplinary history, if any, of advisors currently
employed by IIROC-regulated firms is available free of charge through
the IIROC AdvisorReport service. Information on how to make investment dealer, advisor or
marketplace-related complaints is available by calling 1.877.442.4322.
SOURCE Investment Industry Regulatory Organization of Canada (IIROC) - General News
For further information:
Vice President - Pacific Region
Director, Public Affairs