Ms. Elsa Renzella reports

ENFORCEMENT NOTICE - HEARING - IN THE MATTER OF KRISHNA SAMMY - APPEARANCE TO SET A HEARING DATE

An appearance has been scheduled before a hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) for the purpose of setting a date for the disciplinary hearing in the matter of Krishna Sammy.

The discipline hearing concerns allegations that Mr. Sammy recommended that his clients purchase securities in their accounts when, at the same time and without the knowledge of his clients, he was selling his own personal holdings of these securities. IIROC staff also alleges that Mr. Sammy made investment recommendations to several clients that were unsuitable for these clients based on their risk tolerance and investment objectives.

The set-date appearance is open to the public, unless the hearing panel orders otherwise. The date for the discipline hearing will be made available on the IIROC website.

Documents related to continuing IIROC enforcement proceedings, including reasons and decisions of hearing panels, are posted on the IIROC website as they become available.

Set-date appearance:  Feb. 24, 2015, at 10 a.m.

Location:  IIROC British Columbia Room, 121 King St. West, Suite 2000, Toronto, Ont.

Specifically, the allegations are that:

• On multiple occasions between January, 2009, and December, 2011, Mr. Sammy purchased or recommended the purchase of securities in client accounts on the same day he either had sold or intended to sell the securities of these same issuers from his personal account, thereby placing him in a conflict of interest with those clients, which he failed to address appropriately, contrary to dealer member rules 29.1 and National Instrument 31-103.
• On multiple occasions between January, 2009, and December, 2011, Mr. Sammy purchased securities in managed client accounts on the same day he either had sold or intended to sell the securities of these same issuers from his personal account: (a) without the written consent of his clients, contrary to dealer member Rule 1300.19; and (b) in reliance upon information as to trades made or to be made in managed accounts, contrary to dealer member Rule 1300.18.
• Between January, 2009, and December, 2011, Mr. Sammy recommended the purchase of securities to several clients without using due diligence to ensure that: (a) the recommendations were suitable for the clients based on their financial situation, investment knowledge, investment objectives and risk tolerance, contrary to dealer member Rule 1300.1(q); and/or (b) the recommendations were in accordance with the risk tolerance stated on clients' new account application forms and within the bounds of good business practice, contrary to to dealer member rules 1300.1(o) and/or (q).

IIROC formally initiated the investigation into Mr. Sammy's conduct in April, 2012. The alleged violations occurred while he was a registered representative, a portfolio manager and supervisor with the Brampton, Ont., branch of DWM Securities Inc. (previously Dundee Securities Corp.), an IIROC-regulated firm. Mr. Sammy is no longer a registrant with an IIROC-regulated firm.

The notice of hearing, which sets out the allegations, is available on the IIROC website.