In early August, a hearing panel of the Investment Industry Regulatory Organization of Canada accepted a settlement agreement, with sanctions, between IIROC staff and Steven Frank Carinci.
Carinci admitted he failed to use due diligence to ensure his investment recommendations were suitable when his clients purchased certain leveraged exchange-traded funds and other securities.
Specifically, Carinci admitted to the following violation:
(a) From June 2008 to August 2010, he failed to use due diligence to ensure that recommendations made with respect to certain securities were suitable for his clients, contrary to IIROC Dealer Member Rule 1300.1(q).
Pursuant to the settlement agreement, Carinci agreed to the following penalties:
(a) A suspension from approval in any registered capacity with IIROC for a period of one month beginning August 12, 2013;
(b) A fine of $40,000, which includes disgorgement of commissions for the trades at issue; and
(c) A requirement that he successfully complete the Conduct and Practices Handbook (CPH) course within six months of the acceptance of the settlement agreement.
Carinci also agreed to pay costs in the amount of $2,500. Read the agreement.
IIROC formally initiated the investigation into Carinci’s conduct in November 2010. The conduct occurred when he was a registered representative with the Toronto branch of Canaccord Genuity, an IIROC-regulated firm. Carinci is currently employed as a registered representative with the North York, Ontario branch of Desjardins Securities, an IIROC-regulated firm.