On December 18, 2015, a hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a settlement agreement, with sanctions, between IIROC staff and Xavier Cheng Kuo Li.
Li admitted that he made discretionary transactions in client accounts. Specifically, Li admitted to the following violation:
(a) From January 2011 through June 2013, Li conducted discretionary transactions in the accounts of two different clients, contrary to IIROC Dealer Member Rule 1300.4.
Pursuant to the settlement agreement, Li agreed to the following penalties:
(a) a one-year suspension from registration in any capacity;
(b) payment of a fine in the amount of $40,000;
(c) a requirement to successfully rewrite the exam based on the Conduct and Practices Handbook; and
(d) a requirement that any future registration shall be subject to a one-year period of strict supervision.
Li also agreed to pay costs in the amount of $2,500.
IIROC formally initiated the investigation into Li’s conduct in May 2014. The conduct occurred while Li was a registered representative with the Vancouver branch of Raymond James Ltd., an IIROC-regulated firm. Until December 18, 2015, Li was registered in the same capacity at the same firm, but has been on medical leave since July 2013.