The Investment Industry Regulatory Organization of Canada has fined a former Toronto-based registered representative $25,000 for placing herself in a conflict of interest with her clients.

Following a disciplinary hearing in June, an IIROC hearing panel has announced disciplinary measures against Nancy Esson, a former registered rep employed at the Toronto branch of Secutor Capital Management Corp.

The hearing panel found that between December 2004 and April 2005, Esson placed herself in a conflict of interest when she received shares of a company from a client with no indication of whether she paid for them; then sold the same client’s debenture holdings in that company to several other of her clients.

Esson earned nearly $9,000 in net profit from the transaction, IIROC found.

She has been suspended for 12 months and fined $25,000. The penalty also stipulates that Esson must successfully complete the Conduct and Practices Handbook examination before being reapproved for registration by IIROC, and must pay costs of $2,000.

IIROC noted that the penalties against Esson are line with penalties imposed on two other persons implicated in this matter.

A second charge against Esson involving unauthorized trading in four client accounts was dismissed by the hearing panel.

Esson is no longer registered in any capacity with an IIROC-regulated firm.

IE