IN THE MATTER OF Carolann Steinhoff - Discipline

VANCOUVER, June 24 /CNW/ - Notice is hereby given that a hearing will be held before a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC), on Tuesday August 3, 2010, at UBC Robson Square, Room C 225, 800 Robson St., Vancouver, British Columbia, at 10:00 a.m. to hear evidence and submissions in the matter of Carolann Steinhoff (the Respondent).

The hearing concerns matters for which the Respondent may be disciplined as an Approved Person of IIROC, pursuant to Part 10 of IIROC Dealer Member Rule 20.

The hearing concerns allegations that the Respondent:

    
    1.  On June 10, 2008, prior to opening a new joint account for CK and AK
        with a short term time horizon, failed to determine or consider the
        rate of return her clients were seeking or how much money they were
        prepared to lose in their account and thereby failed to learn
        essential facts relative to her clients contrary to IIROC Dealer
        Member Rules 29.1 and / or 1300.1(a);

    2.  On June 10, 2008 failed to ensure that the New Client Application
        Form (NCAF) for a new joint account of her clients CK and AK
        reflected the essential fact that the funds in the account would be
        needed approximately four months later to make the down payment on
        the Ks' new home and thereby acted contrary to IIROC Dealer Member
        Rules 29.1 and / or 1300.1(a);

    3.  On June 26, 2008, and subsequently on July 8, 2008, entered orders in
        the joint account of her clients CK and AK to purchase 12 different
        securities totaling approximately $240,000 without first obtaining
        approval from the clients as to the specific securities to be
        purchased, the amount of each security to be purchased, or the price
        at which the security would be purchased, when the account was not a
        discretionary account and thereby acted contrary to IIROC Dealer
        Member Rules 29.1 and / or 1300.4;

    4.  On June 26, 2008, and subsequently on July 8, 2008, entered orders in
        the joint account of her clients CK and AK to purchase 12 different
        securities totaling approximately $240,000 when approximately
        $120,000 of the money used to purchase the securities was borrowed on
        margin and when use of margin to that extent was inconsistent with
        the clients' investment objectives for the account. The Respondent
        thereby acted contrary to IIROC Dealer Member Rules 29.1 and / or
        1300.1 (p) and (q);

    5.  On June 26, 2008, and subsequently on July 8, 2008, recommended and
        constructed a portfolio of investments for her clients CK and AK in
        their joint account consisting of 12 different securities totaling
        approximately $240,000 and approximately $120,000 of margin debt
        which was not suitable for the clients and inconsistent with the
        clients' objectives for the account which was to ensure that a
        certain sum invested was available approximately four months later
        for the down payment on their new home. The Respondent thereby acted
        contrary to IIROC Dealer Member Rules 29.1 and / or 1300.1 (p) and
        (q);

    6.  On August 26, 2008, recommended that her clients CK and AK continue
        with previously purchased investments in their joint account when
        that portfolio was not suitable for her clients and inconsistent with
        their investment objectives. The Respondent thereby acted contrary to
        IIROC Dealer Member Rules 29.1 and / or 1300.1 (q); and

    7.  On November 28, 2008, made a false statement in response to an
        inquiry from her firm's Chief Compliance Officer and Chief Regulatory
        Counsel, who had requested information from her after receiving a
        written client complaint from her clients CK and AK. The Respondent
        stated in an email that "Margin and leverage were brought up by
        (CK)" when in fact the Respondent knew that was not true. The
        Respondent thereby acted contrary to IIROC Dealer Member Rule 29.1.
    

IIROC formally initiated the investigation into the Respondent's conduct on December 18, 2008. The alleged violations occurred when the Respondent was a Registered Representative with the 240-730 View Street, Victoria, British Columbia branch of Wellington West Capital Inc. The Respondent is currently a Registered Representative with the 340A-730 View Street, Victoria, British Columbia sub-branch of Queensbury Securities Inc., an IIROC-regulated firm.

The Notice of Hearing is available at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=F2E67A74982E49A1B946692041CA9C01&Language=en

The hearing is open to the public, unless the Hearing Panel orders otherwise. The Hearing Panel's decision and reasons will be made available to the public.

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.

SOURCE Investment Industry Regulatory Organization of Canada (IIROC) - General News

For further information: For further information: Warren Funt, Vice President, Western Canada, 604.331.4750, wfunt@iiroc.ca; Jeff Kehoe, Acting Vice President, Enforcement, 416 943.6996, jkehoe@iiroc.ca


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