On November 7, 2011, a hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) found Stéphane Rail guilty of failing to act in his client’s best interests and for attempting to impede the investigation by the IDA.
Rail failed to learn the essential facts relative to his client’s need and the authorized individual on their account, and accepted instructions from an unauthorized person.
On February 24, 2012, the panel imposed the following penalties on Rail:
(a) a permanent ban on approval with IIROC; and
(b) a $100,000 fine. Rail is also required to pay costs in the amount of $10,000.
IIROC formally initiated the investigation into Rail’s conduct in November 2009. The violations occurred when he was a registered representative with the Québec City branches of TD Evergreen or Canaccord Capital Inc., both IIROC-regulated firms. Rail is no longer a registrant with an IIROC-regulated firm.
Read the penalty decision.