News Release

Vancouver – The British Columbia Securities Commission has released its reasons for overturning an Investment Dealers Association’s decision against Vancouver Island broker Carolann Steinhoff.

On Oct. 28, 2004, a commission panel reversed the IDA’s April 2003 decision that Steinhoff had conducted an unauthorized transaction in a client account and represented clients in Ontario without proper registration while employed as a broker at ScotiaMcLeod Inc. It also removed the $5,250 penalty imposed against Steinhoff by the IDA.

The commission found that the IDA “erred in law, overlooked material evidence, and relied on speculation as to facts not in evidence, in finding that Steinhoff engaged in unauthorized trading.”

In its analysis of the IDA panel’s finding of unauthorized trading, the commission noted that the IDA panel failed to admit relevant evidence and in so doing, “denied Steinhoff the right to a fair hearing.” The commission also said that the IDA panel improperly relied, at least in part, on its own speculation about how Steinhoff conducted her business.

“This issue was not before [the IDA panel], and its conclusions relied on speculation as to facts not in evidence,” said the commission. “The IDA panel therefore erred in law.”

The commission also ruled that the IDA erred by failing to consider all the circumstances in determining that Steinhoff’s trading in Ontario without registration amounted to conduct or a practice unbecoming or detrimental to the public interest. The commission said that Steinhoff and her employer took the steps necessary to ensure she was registered in all relevant jurisdictions, including Ontario. Other relevant circumstances included the IDA’s unexplained delay in processing Steinhoff’s registration application.

The commission will not order costs for the hearing.

Steinhoff is currently a registered representative with Wellington West Capital Inc. in Victoria.

The B.C. Securities Commission is an independent provincial government agency responsible for regulating trading in securities within the province. You may view the decision on our website www.bcsc.bc.ca. If you have questions, contact Andrew Poon, Media Relations, 604-899-6880.