A hearing panel of the Investment Dealers Association of Canada has fined a former rep with CFG Canada Inc. and Benson-Quinn GMS Inc., both former IDA Member firms, $30,000 for trading in client accounts without authorization.
On February 14, the panel considered, reviewed and accepted a settlement agreement negotiated between IDA staff and Janet Beatrice Kim. Kim admitted that:
- between Dec. 31, 2001, and June 26, 2002, she effected discretionary trades in a client account without the account having been approved and accepted in writing as a discretionary account by the designated person at CFG;
- on or about April 8, 2002, and on or about May 17, 2002, she personally covered and paid margin calls issued against a client without the knowledge, consent or authorization of CFG; and
- on or about May 28, 2003, while employed at Benson-Quinn, she promised to personally compensate a former client for losses incurred at CFG during the period from December 2001 to June 2002 inclusive without the knowledge, consent or authorization of either firm.
For her misconduct, Kim was assessed a $30,000 fine and six month suspension. As a condition of re-approval, she must successfully complete the Conduct and Practices Handbook examination and be subject to strict supervision for a period of 12 months. In addition, Kim must pay $10,000 in costs.
Kim is currently not employed by an IDA member firm.
For a complete summary of facts, please see IDA Bulletin 3520 at www.ida.ca.