On November 3, 2016, a hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a settlement agreement, with sanctions, between IIROC staff and Nadir Janmohamed.

IIROC says Janmohamed admitted discretionary trading, failure to use due diligence to ensure orders were within the bounds of good business practice and failure to know his client.

Specifically, he admitted to the following violations:

(a) Between January 2009 and December 2012, Janmohamed failed to use due diligence to ensure that the acceptance of orders for clients’ accounts were within the bounds of good business practice, contrary to IIROC Dealer Member Rule 1300.1 (o);

(b) Between January 2009 and December 2012, Janmohamed conducted discretionary trades in the accounts of three clients, without those accounts having been accepted and approved as discretionary accounts, contrary to IIROC Dealer Member Rule 1300.4; and

(c) Between January 2009 and December 2012, Janmohamed failed to use due diligence to learn and remain informed of the essential facts relative to one client, contrary to IIROC Dealer Member Rule 1300.1(a).

Pursuant to the settlement agreement, Janmohamed agreed to the following penalties:

(a) a fine in the amount of $25,000;

(b) disgorgement of commission in the amount of $22,000;

(c) a requirement to rewrite the Conduct and Practices Handbook course within one year of any re-registration with IIROC; and

(d) six months of close supervision upon any re-registration with IIROC. Janmohamed also agreed to pay costs in the amount of $3,000.

Read the settlement agreement.

IIROC formally initiated the investigation into Janmohamed’s conduct in June 2014. The conduct occurred while he was a registered representative with the Toronto, Ontario office of BMO Nesbitt Burns, an IIROC-regulated firm. Janmohamed is no longer a registrant with an IIROC-regulated firm.