VANCOUVER , Oct. 8, 2019 /CNW/ - On September 18, 2019 , a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC Staff and Alykhan Kassam .
Mr. Kassam admitted that he made unsuitable recommendations for two clients that were outside their risk tolerance and investment objectives. Both clients suffered losses that represented a significant portion of their total portfolio.
Specifically, Mr. Kassam admitted to the following violations:
- Between March 2013 and December 2014 , he failed to use due diligence to ensure that recommendations were suitable for a client, contrary to Dealer Member Rule 1300.1(q);
- In or around December 2013 , he failed to use due diligence to ensure that recommendations were suitable for a client, contrary to Dealer Member Rule 1300.1(q).
Pursuant to the Settlement Agreement, Mr. Kassam agreed to the following penalty:
(a) Fine of $15,000 ;
(b) Suspension from approval in any capacity for 60 days; and
(c) Period of 9 months of close supervision upon any registration with IIROC.
The Settlement Agreement is available at:
IIROC formally initiated the investigation into Mr. Kassam's conduct in July 2017 . The violations occurred while he was a Registered Representative with the Vancouver branch of Canaccord Genuity Corp. Mr. Kassam is no longer a registrant with an IIROC-regulated firm.
Documents related to ongoing IIROC enforcement proceedings – including Reasons and Decisions of Hearing Panels – are posted on the IIROC website as they become available. Click here to search and access all IIROC enforcement documents.
* * *
IIROC is the national self-regulatory organization that oversees all investment dealers and their trading activity in Canada's debt and equity markets. IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while supporting healthy Canadian capital markets. IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of more than 170 Canadian investment dealer firms and their more than 29,000 registered employees, the majority of whom are commonly referred to as investment advisors. IIROC also sets and enforces market integrity rules regarding trading activity on Canadian debt and equity marketplaces.
IIROC investigates possible misconduct by its member firms and/or individual registrants. It can bring disciplinary proceedings which may result in penalties including fines, suspensions, permanent bars, expulsion from membership, or termination of rights and privileges for individuals and firms.
All information about disciplinary proceedings relating to current and former member firms is available in the Enforcement section of the IIROC website. Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by IIROC-regulated firms is available free of charge through the IIROC AdvisorReport service. Information on how to make investment dealer, advisor or marketplace-related complaints is available by calling 1 877 442-4322.
SOURCE Investment Industry Regulatory Organization of Canada (IIROC) - General News
View original content: http://www.newswire.ca/en/releases/archive/October2019/08/c5373.html