Enforcement Notice Decision - IN THE MATTER OF Steven Frank Carinci - Settlement Accepted

Aug 19, 2013, 16:08 ET from Investment Industry Regulatory Organization of Canada (IIROC) - General News

TORONTO, Aug. 19, 2013 /CNW/ - On August 7, 2013, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and Steven Frank Carinci.

Mr. Carinci admitted that he failed to use due diligence to ensure that investment recommendations were suitable for his clients when his clients purchased certain leveraged exchange-traded funds and other securities.

Specifically, Mr. 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, Mr. 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 Mr. Carinci successfully complete the Conduct and Practices Handbook (CPH) course within six months of the acceptance of the Settlement Agreement.

Mr. Carinci also agreed to pay costs in the amount of $2,500.

The Settlement Agreement is available at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=DC115112AB2B4DF59FE3BC3CC3AAF9C2&Language=en and the Hearing Panel's decision will be made available at www.iiroc.ca.

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.

IIROC formally initiated the investigation into Mr. Carinci's conduct in November 2010.  The conduct occurred when he was a Registered Representative with the Toronto branch of Canaccord Genuity Corp., an IIROC-regulated firm.  Mr. Carinci is currently employed as a Registered Representative with the North York, Ontario branch of Desjardins Securities Inc., an IIROC-regulated firm.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