A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has found that Savitri Shamseer violated IIROC Rules by making discretionary trades in a client account that was not a discretionary account.

In its decision dated January 24, 2011, the panel also imposed a penalty calling for Ms. Shamseer to:

  • Be subject to a six-month suspension from registration in any capacity with IIROC, for the period January 28, 2011 to July 27, 2011;
  • Pay a $50,000 fine;
  • Successfully complete the examination based on the Conduct and Practices Handbook Course before re-registration in any capacity with IIROC;
  • Work under strict supervision for 12 months from the date registered with IIROC;
  • Work under close supervision for the subsequent six months;
  • Pay $5,000 in costs.

Specifically, Ms. Shamseer made 19 discretionary trades in a client’s account without first having the account approved and accepted as a discretionary account, contrary to IDA Regulation 1300.4 (now IIROC Rule 1300.4).

The violation occurred between September 2006 and February 2007, while Ms. Shamseer was a Registered Representative at Argosy Securities Inc., an IIROC-regulated firm. IIROC began investigating Ms. Shamseer’s conduct on February 6, 2008, after receiving a client complaint. Ms. Shamseer is no longer with an IIROC-regulated firm.