Enforcement Notice - Decision - IN THE MATTER OF Krishna Sammy - Discipline Decision - Liability

TORONTO, Jan. 26, 2016 /CNW/ - Following a disciplinary hearing held on November 23, 24, 25 and 26 2015, in Toronto, Ontario, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) found that Krishna Sammy placed himself in a conflict of interest with his clients when he recommended that his clients purchase securities in their accounts when, at the same time and without the knowledge of his clients, he was selling his own personal holdings of these securities. The Hearing Panel also found that Mr. Sammy made investment recommendations to several clients that were unsuitable for these clients based on their risk tolerance. The Hearing Panel stayed an allegation concerning the trading in certain clients' managed accounts because the allegation was based on the same facts as those giving rise to the conflict of interest, and the Hearing Panel determined that it was precluded from making multiple convictions based on the same facts.

The Hearing Panel's decision dated January 18, 2016, is available at:

Specifically, the Hearing Panel found that Mr. Sammy committed the following violations:  


On multiple occasions between January 2009 and December 2011, Mr. Sammy purchased or recommended the purchase of securities in client accounts on the same day he either had sold or intended to sell the securities of these same issuers from his personal account, thereby placing him in a conflict of interest with those clients which he failed to address appropriately, contrary to Dealer Member Rules 29.1 and National Instrument 31-103; and


Between January 2009 and December 2011, Mr. Sammy recommended the purchase of securities to several clients without using due diligence to ensure that: the recommendations  were in accordance with the risk tolerance stated on clients' New Account Application Forms and within the bounds of good business practice, contrary to to Dealer Member Rules 1300.1(o) and/or (q).

A separate hearing will be held to determine the penalty to be imposed on Mr. Sammy, the date of which will be made available at www.iiroc.ca

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.

IIROC formally initiated the investigation into Mr. Sammy's conduct in April 2012. The conduct occurred while he was a Registered Representative, a Portfolio Manager and a Supervisor with the Brampton, Ontario branch of DWM Securities Inc. (previously Dundee Securities Corporation), an IIROC-regulated firm. Mr. Sammy is no longer a registrant with an IIROC-regulated firm.

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IIROC is the national self-regulatory organization which oversees all investment dealers and their trading activity in Canada's debt and equity markets. 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: Enforcement Contact: Elsa Renzella, Vice-President, Enforcement, 416 943-5877, erenzella@iiroc.ca; Media Contact: Karen Archer, Manager, Media Relations, 416 865-3046, karcher@iiroc.ca


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