A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has fined a former Kelowna, B.C., broker $290,000 for several by-law violations.

Following a disciplinary hearing held on April 6 & 7, in Vancouver, the panel found that Melaney Phillips recommended unsuitable purchases for two clients, made discretionary purchases for one client, prepared tax returns for clients without the consent of her firm, and on one occasion, sold shares from her own account to a client without ensuring the client obtained the best available price.

After a penalty hearing held on September 16, the panel imposed the following penalties on Phillips:

  • a fine of $290,000;
  • disgorgement of profits of $10,350;
  • a 3 year suspension from registration from the date of the penalty decision;
  • a requirement for full payment of fine, disgorgement, & costs prior to re-registration;
  • a requirement that she successfully re-take and successfully complete all appropriate courses prior to re-registration;
  • a requirement that she be subject to strict supervision for the first 2 years in the event that she is re-registered; and
  • payment of costs in the amount of $15,000.

IIROC formally initiated the investigation into Phillips’ conduct in February 2009. The violations occurred when she was a registered representative with the Kelowna branch of Canaccord Genuity Corp.

Phillips is no longer a registrant with an IIROC regulated firm.