The Investment Dealers Association of Canada has fined star broker Carolann Steinhoff of Victoria $5,250 and ordered her to rewrite the Conduct and Practices Handbook Course exam for engaging in unauthorized trading.

The IDA’s Pacific District Council found Steinhoff, at the time a broker with ScotiaMcLeod Inc. (now Scotia Capital Inc.), effected one unauthorized transaction in a client account and represented clients in Ontario without being registered to do so in that province, both contrary to By-law 29.1. At the same time the council dismissed eight other accounts of unauthorized trading.

Steinhoff, currently a broker at United Capital Securities Inc. in Victoria, is appealing the council’s April 28 decision to the British Columbia Securities Commission.

“The penalty against Ms. Steinhoff includes a fine in the amount of $5,000 for the unauthorized trade and $250 for the unregistered trading,” the IDA said. “Further, as a condition of her continued approval by the Association, she must successfully rewrite the Conduct and Practices Handbook Course exam within six months.

The penalty against Steinhoff, at one time one of the highest-performing brokers in the country, was relatively light. The IDA said that in relation to the unauthorized trade, “the panel considered that this was one transaction involving one client and that the transaction was suitable for the client except for the lack of client authority. The panel also considered that there were no losses to the client as a result of this transaction.

“In relation to the unregistered trading, the panel stated that this was a technical infraction which deserved only a minimal fine.”