Unauthorized investment trades lead to fines

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

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.