The representative is fined $20,000 and suspended for 12 months for breaching sales incentive rules
The Canadian Investment Regulatory Organization (CIRO) conducted a hearing on September 13, where a panel accepted a settlement agreement involving Sabrina Antonia Baggs.
Baggs admitted to setting up and cancelling pre-authorized contributions (PACs) in clients' accounts without their knowledge or authorization.
The actions were aimed at meeting sales targets or increasing her compensation through the Dealer Member’s sales incentives.
Between November 6, 2019, and February 27, 2020, Baggs established and cancelled 51 unauthorized PACs in the accounts of 40 clients.
None of these transactions resulted in contributions being made to client investment accounts, but they generated sales revenue used to calculate Baggs’ annual bonus.
CIRO’s investigation found no evidence of financial loss to clients, nor were any complaints filed.
The panel imposed a prohibition on Baggs from conducting securities-related business in any capacity for 12 months. She was also fined $20,000 and ordered to pay $5,000 in costs.
The terms of the settlement include immediate payment of $5,000 in costs and a portion of the fine, with the remainder to be paid in instalments over four months.
The panel noted that the penalties aim to deter similar conduct and maintain public confidence in the regulatory framework.
At all material times, Baggs conducted business in Markham, Ontario, and she is not currently registered in the securities industry.
