BCSC panel upholds IIROC decision that Victoria broker contravened IIROC suitability rules
Vancouver – A British Columbia Securities Commission panel has upheld the decision of an Investment Industry Regulatory Organization of Canada (IIROC) hearing panel that Victoria broker Carolann Steinhoff contravened IIROC rules regarding suitability.
In October 2011, an IIROC panel found that Steinhoff, then employed at the Victoria branch of Wellington West Capital Inc., engaged in unauthorized discretionary trading, that she made and implemented investment recommendations that were not suitable for the clients’ investment objectives, and that she knowingly made false statements to Wellington West. The original allegations were in connection with funds given to her by a couple for short-term investment.
The IIROC panel issued a penalty decision on July 4, 2012. The panel suspended Steinhoff for one year and made orders against her, including a fine of $100,000, costs of $20,000, and disgorgement of commissions of $6,813.
Steinhoff applied for a hearing and review of the IIROC panel decisions.
In a decision dated August 7, 2013, the commission panel confirmed the IIROC panel’s decision concerning the suitability allegations, and set aside the finding that Steinhoff misled Wellington West.
The panel also set aside the penalty decision.
In its decision, the commission panel provided guidance for submissions on appropriate penalties, and directed the parties to make submissions on sanctions according to the schedule set out in the findings.
The B.C. Securities Commission is the 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 by typing in the search box, Carolann Steinhoff or 2013 BCSECCOM 308. Information regarding disciplinary proceedings can be found in the Enforcement section of the BCSC website.
Please visit the Canadian Securities Administrators’ Disciplined Persons List for information relating to persons disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA).
If you have questions, contact Richard Gilhooley, media relations, 604-899-6713. For public inquiries, call 604 899 6854 or 1 800 373 6393 (toll free).
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