A hearing panel of the Investment Dealers Association of Canada (IDA), has fined an Argosy Securities Inc. broker $40,000 for conducting discretionary trades without approval.

Savitri Shamseer is employed as a registered representative employed at the Richmond Hill, Ont. office of Argosy.

On Dec. 19, 2006, the panel accepted a Settlement agreement negotiated between Shamseer and staff of the IDA. Shamseer admitted that between Feb. 19, 2002 and Dec. 5, 2003, she conducted discretionary trades in a client account without the account being specifically approved and accepted in writing as a discretionary account.

She further admitted that during the same period, she failed to use due diligence to ensure that trades conducted in the same client account were suitable based on factors such as the clients’ financial situation, investment knowledge, investment objectives and risk tolerance.

Shamseer has partially compensated the clients for their losses.

For her misconduct, the IDA fined Shamseer $40,000 and ordered her to pay $3,000 in costs. She must also disgorge $2,100 in commission.

In addition, she is to be under strict supervision for a period of 12 months and must successfully complete the Conduct and Practices Handbook exam within six months of the effective date of the settlement agreement.

Shamseer remains employed at the Richmond Hill office of Argosy.

For a complete summary of facts, please see IDA Bulletin 3599.