A hearing panel of the Investment Dealers Association of Canada has imposed a discipline penalty upon Martin Brunetta, at all material times an approved person at the Montreal branch of CIBC World Markets Inc.

On June 12, the panel accepted a settlement agreement negotiated between staff of the IDA’s enforcement department and Brunetta. Pursuant to the settlement agreement, Brunetta admitted that in January 2004 he failed to use due diligence to remain informed of the essential facts relative to certain foreign clients.

Brunetta also admitted that in February 2004, he engaged in conduct unbecoming and detrimental to the public interest and failed to exercise his role to protect the public by not questioning the nature of certain transfers in the accounts of foreign clients, when he had never met the foreign clients in question

Further, during the period of January to October 2004, Brunetta executed some 50 transactions in client accounts on the instructions of third parties, without the records of the investment dealer showing that any written authorization or ratification had been granted by the clients.

For his misconduct, Brunetta is fined $30,000 and must pay $7,000 in costs. He must also pay back $1,451.32 in commissions. In addition, Brunetta is to be under strict supervision for a period of six months and must successfully complete the Conduct and Practices Handbook exam within six months of the effective date of the settlement agreement.

Brunetta remains employed with the Montreal branch of CIBC World Markets Inc.

For a complete summary of facts, please see IDA Bulletin 3649.