The British Columbia Securities Commission has set aside a permanent ban that the Investment Industry Regulatory Organization of Canada (IIROC) imposed on a former registrant who failed to disclose a criminal charge in registration documents.

In 2004, an IIROC panel found that Kianosh Rahmani breached two bylaws when he did not disclose that he was subject to a criminal charge on registration renewal and application forms. The panel found that Rahmani demonstrated a “callous disregard” in completing the forms and ordered that he be permanently prohibited from approval to act in any registered capacity with any IIROC member. He was also fined and ordered to pay costs.

Rahmani did not dispute the IIROC panel decision or the fines and costs. Instead, he asked a commission panel to substitute for the permanent ban a suspension of no longer than five years.

In setting aside the IIROC panel’s decision, the commission panel said that the cases IIROC presented to support the ban involved conduct more serious than Rahmani’s and none of the respondents in these decisions were permanently banned. The BCSC panel also said that neither Rahmani’s misconduct nor his criminal conviction “evidences behaviour that would call into question his ability to competently and honestly perform his duties as a registrant.”

The BCSC panel said it did not make any further orders against Rahmani since the expiry date for a suspension that would have been reasonable under the circumstances has passed.

IIROC was known as the Investment Dealers Association of Canada (IDA) at the time of the decision.

IE