An IIROC hearing panel has accepted a settlement agreement including sanctions between its staff and Michael Reid Ast.

Ast admitted to engaging in discretionary trading over two decades—with clients’ consent, but without obtaining the necessary prior written authorization from the clients or his firm.

Ast confessed to the following violation:

Between 1991 and 2009, he used the accounts of 27 clients to conduct discretionary trading without having the accounts approved and accepted as discretionary accounts, contrary to IIROC Dealer Member Rule 1300.4 (IDA Regulation 1300.4 prior to June 1, 2008).

He agreed to pay a fine of $20,000 and to a period of suspension from registration in any category with IIROC for two months. He is also required to pay costs in the amount of $5,000.

IIROC formally initiated the investigation into Ast’s conduct in October 2010. The violations occurred when he was a registered representative with the Toronto Brookfield Place branch of CIBC Wood Gundy, and he continues to be a rep at the branch.

Read the decision and settlement agreement.