The Investment Industry Regulatory Organization of Canada (IIROC) has fined Vancouver-based Raymond James Ltd. $50,000 for failure to adequately supervise the option trading of a registered representative.
On November 22, an IIROC hearing panel accepted a settlement agreement between IIROC staff and Raymond James.
The investment dealer admitted that between May 14 and Oct. 31, 2008 it did not properly supervise option trades in 23 client accounts made by Kostis Arapis, at the time a registered representative and branch manager with the Raymond James branch in Saskatoon, Sask.
Since Arapis was a branch manager, his trading activities were supervised off-site.IIROC says the supervisors of Arapis’s trading mistakenly believed the trading platform being used would automatically ensure all options trades were appropriate for the accounts. As a result, the supervisors did review each trade but did not check whether or not they met each account’s approved options trading levels.
In addition to the $50,000 fine, Raymond James also agreed to pay $10,000 in costs.
Arapis entered into a settlement agreement with IIROC as a result of his conduct in May 2011. His penalty included a $45,000 fine and $5,000 in costs.
IIROC fines, sanctions Saskatoon broker
Arapis is registered with the Saskatoon branch of Canaccord Genuity Corp.