A hearing panel of the Investment Dealers Association of Canada (IDA) has fined branch manager with the Calgary office of Union Securities Ltd. $15,000 for failing to supervise activities in two client accounts.

Following a disciplinary hearing held between Oct, 5 and 6, 2006, the panel found Simon Schillaci guilty of failure to adequately supervise the account management activities of two client investment accounts by the registered options representative, E.L., during the period between October 2002 and March 2003. The accounts were the subject of high-risk, equity and option trading, which was not suitable for the clients given their personal and financial circumstances, and which resulted in substantial financial loss.

As well, the panel found, Schillaci contravened IDA regulations by failing to maintain adequate supervision records and failing to establish appropriate procedures and controls for effective supervision of the registrants of the Union Securities’ Calgary office during the period between May 2002 and September 2003.

In addition to the $15,000 fine, Schillaci must pay $10,000 in costs. He is also required to successfully complete the Effective Management Seminar and the Options Supervision Course within one year of the effective date of the decision or face immediate suspension from approval as branch manager.

Schillaci continues to be employed as branch manager with the Calgary office of Union Securities.

For a complete summary of facts, please see IDA Bulletin 360.