Enforcement Notice Decision - IN THE MATTER OF David Guy Schayes - Discipline decision - Liability

CALGARY, Oct. 6, 2014 /CNW/ - Following a disciplinary hearing held on March 4 – 6, 2014 and April 3 – 4, 2014, in Edmonton, Alberta, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) found that David Guy Schayes made discretionary trades, unauthorized trades and unsuitable trades, and failed to know one of his clients. 

The Hearing Panel's decision dated September 15, 2014, is available at:

http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=8FD221DB2CAC47EBAEF161E524479A23&Language=en.

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

(a)	In September 2006 and February 2007, Mr. Schayes made unsuitable recommendations for a client account, contrary to IDA by-law 1300.1(q) (Dealer Member Rule 1300.1(q) after June 1, 2008);
(b)	Between April 2007 and March 2010, Mr. Schayes made unauthorized trades in a client account, contrary to Dealer Member Rule 29.1 (IDA by-law 29.1 prior to June 1, 2008);
(c)	Between June 2006 and September 2008, Mr. Schayes failed to use due diligence to learn and remain informed of the essential facts relative to a client, contrary to Dealer Member Rule 1300.1(a) (IDA by-law 1300.1(a) prior to June 1, 2008);
(d)	Between June 2006 and September 2008, Mr. Schayes made unsuitable recommendations in a client account, contrary to Dealer Member Rule 1300.1(q) (IDA by-law 1300.1 (q) prior to June 1, 2008); and
(e)	Between June 2006 and September 2008, Mr. Schayes engaged in discretionary trading in a client account, without the account first having been approved as a discretionary account, contrary to Dealer Member Rule 1300.4 (IDA by-law 1300.4 prior to June 1, 2008).

A separate hearing will be held to determine the penalty to be imposed on Mr. Schayes, 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. Schayes' conduct in April 2011. The conduct occurred when he was a Registered Representative with the Edmonton branch of CIBC World Markets Inc., an IIROC-regulated firm.  Mr. Schayes 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 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

Enforcement Contact: Warren Funt, Vice President, Western Canada, 604 331-4750, [email protected]; Media Contact: Karen Archer, Senior Media and Public Affairs Specialist, 416 865-3046, [email protected]