Regulator says approved person admitted misconduct
An employee at a dealer-member registered with the Canadian Investment Regulatory Organization was fined and suspended from conducting securities industry activities for putting potential bonus payments and other incentives before client interests.
CIRO’s hearing panel in July found that Stephanie Bradshaw set-up and cancelled pre-authorized contributions in the accounts of clients without their knowledge or authorization; and cancelled, rather than amended, pre-authorized contributions in the account of a client and set-up new pre-authorized contributions.
The panel said that Bradshaw’s misconduct was in order to meet sales targets and qualify for a bonus from her then employer, Scotia Securities Inc. She was based in the Edmonton, Alberta area, but is no longer employed in the industry in any capacity.
In the panel’s decision, published this week, it says that Bradshaw admitted that between April 19, 2018, and February 14, 2020, she set up and cancelled 40 PACs in the accounts of 29 clients without the clients' knowledge or authorization. Her employment was terminated by Scotia Securities on November 9, 2021, following the admission.
The panel unanimously concluded that the misconduct described in the Settlement Agreement did violate Mutual Fund Dealer Rule 2.1.1 and was serious in nature, and while it said it said there was no evidence of investor loss, there was investor risk.
As well as the 12-month ban, CIRO imposed a $10,000 on Stephanie Bradshaw. She is also required to pay $5,000 in costs.
