- Personal Financial Dealings with Clients: IIROC Discipline Follows Internal Fine
- December 5, 2014
- Law Firm: Borden Ladner Gervais LLP - Toronto Office
Re Sydney Azancot, 2014 IIROC 44 DN
A settlement agreement reached between Sydney Azancot and IIROC Staff whereby Azancot agreed that he had engaged in personal financial dealings with a client without the knowledge of his employer, and that he had misled his employer in his responses on his annual disclosure forms respecting his personal dealings with clients. His contraventions were found to be in violation of Dealer Member Rule 29.1.
The first contravention covered a period from October 2008 to December 2012. During this time, Azancot advanced multiple cash loans to a client, totaling $133,000.00.
The second contravention was in respect of the annual disclosure forms for 2009, 2010, 2011 and 2012. In the disclosure forms, Azancot was required to inform his employer whether he (a) was acting as a trustee for an individual, and (b) whether he had loaned money to a client. Azancot replied in the negative to both questions when, in fact, he was acting as a trustee for a family member’s trust and he had loaned money to a client.
In 2013, his employer conducted an internal investigation and found that Azancot had committed the two contraventions. He was fined a total of $20,000.00, placed on strict supervision and required to rewrite the Conduct and Practices Handbook Course.
Despite the internal investigation and fine, in the settlement agreement, Azancot agreed to pay an aggregate fine of $15,000.00 to IIROC and costs in the amount of $3,000.00.