Staff of the Investment Industry Regulatory Organization of Canada (IIROC) are seeking a review of a pair of hearing panel decisions that were handed down earlier this year, which found that a rep violated IIROC rules, but declined to impose a suspension in the case.
IIROC said Tuesday that its staff filed an application seeking a review of a pair of hearing panel decisions before the Ontario Securities Commission (OSC). The decisions, which were handed down earlier this year, found first that a rep, Lucy Marie Pariak-Lukic, violated IIROC rules; and, a second decision imposed sanctions for the violation. (See Investment Executive, Rep recommended off-book investments: IIROC, January 13, 2014.)
In the first decision, the panel issued its decision on the merits of the case, which found that Lukic made recommendations to clients concerning their investments in certain securities without making proper inquiries about whether they were exempt from the prospectus requirements; and that this constituted conduct unbecoming, and that it was not in the public interest.
In a second decision, released on March 6, the panel fined her $50,000, ordered that she be under close supervision for six months, that she retake the Canadian Securities Course and the Conduct and Practices Handbook, and that she pay $45,000 in costs. However, the panel declined to impose a suspension on her.
According to the decision, IIROC staff sought a two-year suspension in the case, but the panel decided not to impose that sanction, saying that it was not necessary to protect the public and that the disruption to her career was not warranted.
“In view of the trauma we believe this IIROC regulatory proceeding has had on Ms Lukic, and the sanctions we are imposing, and the fact that if she were to make the same or similar mistake again in the future the consequences next time would likely be a suspension that could effectively end her career in the industry, we believe it is unlikely that her misconduct will be repeated,” it said in the penalty decision.