A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a settlement agreement, with sanctions, between IIROC staff and Ilya Soliterman.
Soliterman admitted that he failed in his “know your client” obligations, and failed to use due diligence to ensure that the acceptance of orders from two clients was suitable for them.
Specifically, Soliterman admitted to the following violations:
a) From May, 2005 to October, 2008, while a registered representative at CIBC World Markets Inc., he:
i) failed to use due diligence to learn and remain informed of the essential facts relative to every customer and to every order or account accepted, contrary to IIROC Rule 1300.1(a);
ii) failed to use due diligence to ensure that the acceptance of any order from a customer is suitable for such customer, contrary to IIROC Rule 1300.1(p).
b) From January, 2004 to October, 2008, while a registered representative at CIBC World Markets Inc., he:
i) failed to use due diligence to learn and remain informed of the essential facts relative to every customer and to every order or account accepted, contrary to IIROC Rule 1300.1(a);
ii) failed to use due diligence to ensure that the acceptance of any order from a customer is suitable for such customer, contrary to IIROC Rule 1300.1(p).
Pursuant to the settlement agreement, Soliterman agreed to pay a fine to IIROC in the amount of $55,000.00.
Soliterman also agreed to pay costs in the amount of $5,000.00.
IIROC formally initiated the investigation into Soliterman’s conduct in November 2009. The violations occurred when he was a registered representative with the Calgary branch of CIBC World Markets Inc., an IIROC-regulated firm. Soliterman is currently registered in the same capacity with the same firm.