The Ontario District Council of the Investment Dealers Association of Canada has fined a former Merrill Lynch Canada Inc. rep $25,000 for discretionary trading.

On Jan. 30, the District Council accepted a settlement agreement negotiated between Christine Brown and association staff. Pursuant to the settlement agreement, Brown admitted that she conducted trades in a joint account with discretion as to at least one of the following elements: the quantity of the security traded; its price or the time of the trade; or without the account being designated as a discretionary account or managed account.

Brown also admitted that she conducted trades in the joint account and sold those shares prior to settlement date without first obtaining payment for the said shares, a practice commonly known as free-riding.

As well, Brown failed to observe high standards of ethics and conduct when she misrepresented to clients of the joint account that she was a Certified Financial Planner when she was not so designated.

Besides the fine, the District Council ordered Brown to pay a $137.28 disgorgement of commissions. She must also successfully rewrite the Conduct and Practices Handbook exam and be subject to close supervision for a period of one month.

For a complete summary of facts, please see IDA Bulletin 3250 at www.ida.ca.