TORONTO, May 27, 2016 /CNW/ - Following a penalty hearing held on April 27, 2016, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) imposed the following penalty on Krishna Sammy:
(a) A fine of $250,000; and
(b) A five-year bar from approval with IIROC, with the condition that he cannot be considered for re-approval until he has paid the fine and costs imposed, or has made arrangements satisfactory to IIROC to do so.
Mr. Sammy is also required to pay costs in the amount of $75,000.
The penalty decision can be found at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=4794B0F241454CF19D6D772DDDFBE4A5&Language=en
In an earlier decision dated January 18, 2016, the Hearing Panel found that Mr. 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 decision can be found at: http://www.iiroc.ca/Documents/2016/1702c7f7-835f-4d48-b543-13c690801628_en.pdf.
In addition, on February 17, 2016, Mr. Sammy filed an Application for a Hearing and Review of the IIROC liability decision to the Ontario Securities Commission.
Further information about the review can be found at: www.osc.goc.on.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, [email protected]; Media Contact: Karen Archer, Manager, Media Relations, 416 865-3046, [email protected]