IN THE MATTER OF Carolann Steinhoff - Penalty Decision
20 Jul, 2012, 10:00 ET
VANCOUVER, July 20, 2012 /CNW/ - Following a penalty hearing held on February 23, 2012, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) imposed the following penalty on Carolann Steinhoff:
|(a)||A 12-month suspension from registration;|
|(b)||After the expiration of her suspension, a condition that her future re-registration be subject to strict supervision for a period of 12 months, and to close supervision for a further 12 months for a total period of 24 months supervision;|
|(c)||A fine of $100,000;|
|(d)||Disgorgement of commissions of $6,813; and|
|(e)||A five-year prohibition from serving as a director or officer of a Member Firm.|
Ms. Steinhoff is also required to pay costs in the amount of $20,000 and is ineligible for reinstatement until she has paid the fine, disgorgement and costs, and passed both the Partners Directors and Officers Course and the Branch Managers Course.
The penalty decision dated July 4, 2012 can be found at http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=AF2D56111712480795F1CADE1DFF4661&Language=en
In an earlier decision on October 6, 2011, the panel found that Ms. Steinhoff acted contrary to IIROC rules. Ms. Steinhoff was found to have made discretionary purchases in a client's account, unsuitable use of margin and unsuitable investments for clients. The panel also found that when her firm's compliance department questioned her about the purchases, Ms. Steinhoff told them that the topic of margin was raised by the client, when she knew that was a false statement. The decision on liability can be found at:
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.
On July 10, 2012, Ms. Steinhoff requested that the British Columbia Securities Commission conduct a hearing and review of both the liability and penalty decisions.
On July 12, 2012, the British Columbia Securities Commission ordered a stay of the sanctions imposed against Ms. Steinhoff pending its hearing and review of this matter.
IIROC formally initiated the investigation into Ms. Steinhoff's conduct in November 2008. The violations occurred when she was a Registered Representative in Victoria, British Columbia with Wellington West Capital Inc., an IIROC-regulated firm. She is currently registered in Victoria with Queensbury Securities Inc., 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.
For further information:
Vice President - Pacific Region
Director, Public Affairs
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