A hearing panel of the Investment Industry Regulatory Organization of Canada ordered a Winnipeg broker to pay $51,500 in fines and costs for numerous breaches of IIROC’s business conduct and know your client rules in different client accounts.

IIROC (at the time, the Investment Dealers Association of Canada) began the investigation into James Jannetta’s conduct on March 22, 2007.

The violations occurred when he was a registered representative employed at the Winnipeg branch of Man Financial Inc. (now MF Global Canada Co.).

Following a hearing on May 18, the hearing panel imposed a fine of $36,500 against Jannetta and required him to pay costs of $15,000.

In an earlier hearing held on January 27, in Winnipeg, the panel found Jannetta:

– failed to record or update client investment objectives and risk tolerance in two client accounts, and engaged in discretionary trading in four client accounts, in violation of IIROC know your client guidelines;

– engaged in conduct unbecoming or detrimental to the public interest when he made three trades in two client accounts without having prior instructions, and made a trading error in a client’s account then arranged for the client to suffer the related loss in return for a promise of future compensation; and

– failed to obtain written authorization to allow for the receipt of trade instructions from a third party.

The panel noted in its reasons that none of Jannetta’s clients suffered any financial loss as a result of his misconduct. However, it added, “it is necessary for the protection of the public that (Mr. Jannetta’s) conduct, which involved multiple incidents over a considerable period of time in blatant disregard for the rules of the industry, be appropriately dealt with in order to deter such misconduct in the industry.”

Jannetta is not currently registered with an IIROC-regulated firm.

IE