Enforcement Notice - Decision - Former London-based adviser fined for borrowing money from an elderly client

LONDON, ON, May 1, 2017 /CNW/ - On April 5, 2017 a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and Carlo Michetti.

Mr. Michetti admitted he borrowed approximately $44,000 from an elderly client without the knowledge and consent of his employer, the London branch of Edward Jones.

Specifically,  Mr. Michetti admitted to the following violation:


During 2015 and 2016, Carlo Michetti engaged in personal financial dealings with a client without his member firm's knowledge or consent, contrary to IIROC Dealer Member Rule 43.


Under the Settlement Agreement, Mr. Michetti agreed to the following penalties:


A fine in the amount of $15,000;


To re write and pass the Conduct and Practices Handbook Examination within one year of any re-registration with IIROC; and


Six months close supervision upon any re-registration with IIROC.


Mr. Michetti also agreed to pay costs in the amount of $1,000.

The Settlement Agreement dated April 5, 2017 is available at http://www.iiroc.ca/Documents/2017/3ca48865-b9c3-4619-b60d-cda12f628579_en.pdf.           

The Hearing Panel's decision is available at http://www.iiroc.ca/Documents/2017/c4a49de4-d3c0-4f3a-8d51-471be2e47f1e_en.pdf.

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. Michetti's conduct in July 2016.  The conduct occurred while he was a Registered Representative with a London, Ontario branch of Edward Jones, an IIROC-regulated firm.  Mr. Michetti is no longer a registrant with an IIROC-regulated firm.

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 supporting healthy Canadian 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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