Unau­tho­rized in­vest­ment trades lead to fines

In­vest­ment reg­u­la­tor fines and sus­pends for­mer Sco­tia Cap­i­tal em­ployee Yousef Hashmi for unau­tho­rized trades

The Guardian (Charlottetown) - - THE ISLAND - BY RYAN ROSS Ryan.Ross@the­guardian.pe.ca Twit­ter.com/ryan­r­ross

A for­mer Sco­tia Cap­i­tal em­ployee who en­gaged in unau­tho­rized trades in­volv­ing six clients has been fined $25,000.

The In­vest­ment In­dus­try Reg­u­la­tory Or­ga­ni­za­tion of Canada (IIROC) re­cently re­leased de­tails of a set­tle­ment with Yousef Hashmi.

IIROC started in­ves­ti­gat­ing Hashmi in Au­gust 2015 while he was a reg­is­tered rep­re­sen­ta­tive with the Char­lot­te­town branch of Sco­tia Cap­i­tal Inc.

He is no longer a reg­is­trant with any IIROC reg­u­lated firms.

The agreed facts set out in a set­tle­ment agree­ment said Hashmi ef­fected unau­tho­rized trades in six clients’ ac­counts be­tween July 2008 and De­cem­ber 2015.

Those clients were aware trades were hap­pen­ing in their ac­counts but didn’t know Hashmi re­quired in­struc­tions be­fore mak­ing any trades.

In one case, the client learned about the trades af­ter the fact, but as­sumed it was ac­cept­able for Hashmi to pro­ceed the way he did.

Hashmi hasn’t been reg­is­tered with IIROC since May 1, 2016.

Along with the fine, Hashmi also agreed to a one-year sus­pen­sion from reg­is­tra­tion with IIROC in any ca­pac­ity.

If he re-reg­is­ters, Hashmi would have to write the con­duct and prac­tices exam and would be un­der close su­per­vi­sion for six months.

Hashmi must also pay $2,500 in costs as part of the set­tle­ment agree­ment.

IIROC de­scribes it­self as the na­tional self-reg­u­la­tory body that over­sees all in­vest­ment deal­ers and their trad­ing ac­tiv­ity in Canada’s debt and equity mar­kets.

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