A hearing panel of the Investment Industry Regulatory Organization of Canada has fined an RBC Dominion Securities Inc. investment advisor $25,000 for violating IIROC by-laws.

The violation occurred when Fan was a registered representative with the Vancouver Park Place Branch of RBC DS.

On October 22, the panel accepted a settlement agreement between IIROC staff and Fan. Fan admitted that between August and December 2006:

> he failed to act in accordance with industry standards of conduct requiring trustworthiness, honesty and fairness in all business dealings with clients; in that by false representation and breach of client trust, he involved a client in a fabricated securities transaction and thereby exposed the client to financial loss, which conduct is unbecoming a registrant and detrimental to the public interest; and

> he failed to act in accordance with industry standards of conduct requiring avoidance of personal financial dealings with clients and with the member firm’s internal policy relating to private placements in that he involved a client in an off-book securities transaction.

The panel fined Fan $25 000, suspended him for a period of 24 months, required him to successfully complete the Conduct and Practices handbook examination prior to re-registration with IIROC, and order him to pay $5,000 in costs.

IIROC formally initiated the investigation into Fan’s conduct on June 13, 2008. He is not currently a registrant with an IIROC regulated firm.

The hearing panel issued its decision verbally on Oct. 22. The settlement agreement and the panel’s decision and reasons will be made available at a later date.

IE