Enforcement Notice - Hearing - IN THE MATTER OF Krishna Sammy - Discipline Hearing
News provided by
Investment Industry Regulatory Organization of Canada (IIROC) - General NewsApr 28, 2015, 16:26 ET
TORONTO, April 28, 2015 /CNW/ - An appearance to set a date for the disciplinary hearing in this matter was held before a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) in the matter of Krishna Sammy on April 7, 2015. The disciplinary hearing has been scheduled for November 23-27, 2015.
The discipline hearing concerns allegations that Mr. Sammy recommended that his clients purchase securities in their accounts when, at the same time and without the knowledge of his clients, he was selling his own personal holdings of these securities. IIROC Staff also alleges that Mr. Sammy made investment recommendations to several clients that were unsuitable for these clients based on their risk tolerance and investment objectives.
Documents related to ongoing IIROC enforcement proceedings – including Reasons and Decisions of Hearing Panels – are posted on the IIROC website as they become available. Click here to search and access all IIROC enforcement documents.
| Hearing Date: |
November 23-27, 2015 at 10:00 a.m. |
| Location: |
IIROC British Columbia Room |
| 121 King St. W |
|
| Suite 2000 |
|
| Toronto, Ontario |
Specifically, the allegations are that:
| (i) |
On multiple occasions between January 2009 and December 2011, Mr. Sammy purchased or recommended the purchase of securities in client accounts on the same day he either had sold or intended to sell the securities of these same issuers from his personal account, thereby placing him in a conflict of interest with those clients which he failed to address appropriately, contrary to Dealer Member Rules 29.1 and National Instrument 31-103; |
| (ii) |
On multiple occasions between January 2009 and December 2011, Mr. Sammy purchased securities in managed client accounts on the same day he either had sold or intended to sell the securities of these same issuers from his personal account: |
| a. without the written consent of his clients, contrary to Dealer Member Rule 1300.19; and |
|
| b. in reliance upon information as to trades made or to be made in managed accounts, contrary to Dealer Member Rule 1300.18; |
|
| (iii) |
Between January 2009 and December 2011, Mr. Sammy recommended the purchase of securities to several clients without using due diligence to ensure that: |
| a. The recommendations were suitable for the clients based on their financial situation, investment knowledge, investment objectives and risk tolerance, contrary to Dealer Member Rule 1300.1(q); and/or |
|
| b. The recommendations were in accordance with the risk tolerance stated on clients' New Account Application Forms and within the bounds of good business practice, contrary to Dealer Member Rules 1300.1(o) and/or (q). |
IIROC formally initiated the investigation into Mr. Sammy's conduct in April 2012. The alleged violations occurred while he was a Registered Representative, a Portfolio Manager and a Supervisor with the Brampton, Ontario branch of DWM Securities Inc. (previously Dundee Securities Corporation), an IIROC-regulated firm. Mr. Sammy is no longer a registrant with an IIROC-regulated firm.
The Amended Notice of Hearing which sets out the allegations is available at:
http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=74D12936C16E4CA6B6BCB3CCEC2A2E00&Language=en
* * *
IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada. Created in 2008 through the consolidation of the Investment Dealers Association of Canada and Market Regulation Services Inc., IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while maintaining efficient and competitive capital markets.
IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of dealer firms and their registered employees and through setting and enforcing market integrity rules regarding trading activity on Canadian equity marketplaces.
IIROC investigates possible misconduct by its member firms and/or individual registrants. It can bring disciplinary proceedings which may result in penalties including fines, suspensions, permanent bars, expulsion from membership, or termination of rights and privileges for individuals and firms.
All information about disciplinary proceedings relating to current and former member firms is available in the Enforcement section of the IIROC website. Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by IIROC-regulated firms is available free of charge through the IIROC AdvisorReport service. Information on how to make investment dealer, advisor or marketplace-related complaints is available by calling 1 877 442-4322.
SOURCE Investment Industry Regulatory Organization of Canada (IIROC) - General News
Related Links
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article