A hearing panel of the Investment Dealers’s Association of Canada has fined an options rep with TD Securities Inc. for failing to use due diligence in recommending trades to a client.

Nerio D’Ambrosi was at all material times a registered representative options in the North York, Ont. and Woodbridge, Ont. offices of TD Securities.

On October 25, the hearing panel considered and accepted a settlement agreement negotiated between D’Ambrosi and IDA staff. Under the agreement, D’Ambrosi admitted that during 2000 and 2001 he failed to use due diligence to ensure that his short term trading recommendations were appropriate for a client and in keeping with the client’s investment objectives. He also admitted that he effected discretionary trades in the client’s account without prior written authorization, and without the account having been accepted as a discretionary account.

The panel fined D’Ambrosi $20,000 and ordered that he be subject to six months close supervision beginning on the effective date of the settlement agreement. In addition, D’Ambrosi must pay $8,000 in costs.