TORONTO, June 8 /CNW/ - A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has imposed a fine of $36,500 against James Jannetta and required him to pay costs of $15,000 for numerous breaches of IIROC's business conduct and know your client rules in different client accounts.
Following a hearing on May 18, 2010, the penalty imposed by the Hearing Panel against Mr. Jannetta also included the following:
(a) His registration should be subject to a period of six months
close supervision if he becomes registered again; and
(b) As a condition of re-approval, he should be required to
successfully rewrite and complete the Conduct and Practices
The panel's Reasons for Decision were issued May 20, 2010 and are available on the IIROC website. In an earlier hearing held on January 27, 2010 in Winnipeg, the panel found Mr. Jannetta:
- Failed to record or update client investment objectives and risk
tolerance in two client accounts and engaged in discretionary trading
in four client accounts, in violation of different sections of the
know your client guidelines in IIROC Rule 1300.
- Engaged in conduct unbecoming or detrimental to the public interest,
under IIROC Rule 29.1, when he made three trades in two client
accounts without having prior instructions; and made a trading error
in a client's account then arranged for the client to suffer the
related loss in return for a promise of future compensation;
- Failed to obtain written authorization to allow for the receipt of
trade instructions from a third party, in violation of IIROC Rule
The panel noted in its reasons that none of Mr. Jannetta's clients suffered any financial loss as a result of his misconduct. However, it added, "it is necessary for the protection of the public that (Mr. Jannetta's) conduct, which involved multiple incidents over a considerable period of time in blatant disregard for the rules of the industry, be appropriately dealt with in order to deter such misconduct in the industry."
IIROC (at the time, the Investment Dealers Association of Canada) began the investigation into Mr. Jannetta's conduct on March 22, 2007. The violations occurred when he was a Registered Representative employed at the Winnipeg branch of Man Financial Inc. (now MF Global Canada Co.). Mr. Jannetta is not currently registered with an IIROC-regulated firm.
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, firstname.lastname@example.org; Jeff Kehoe, Acting Vice President, Enforcement, (416) 943-6996, email@example.com