CIRO Hearing Panel issues Reasons for Decision in the matter of Norman Shogilev

TORONTO, Feb. 22, 2024 /CNW/ - Following a settlement hearing under the Mutual Fund Dealer Rules held on February 5, 2024 in Toronto, Ontario, a hearing panel of the Canadian Investment Regulatory Organization (CIRO) found that Norman Shogilev:

1. 1. 1. failed to update a client's residential address when he knew or ought to have known that the client was no longer a resident of Canada, and processed transactions in the non-resident client's accounts;
      2. failed to report to the Dealer Member that he received a complaint from a client and offered compensation directly to the client to settle the complaint, without the prior written consent of the Dealer Member; and
      3. processed redemptions in the accounts of a client without obtaining client instructions with respect to all essential elements of the trades, thereby engaging in discretionary trading.

The hearing panel issued its reasons for decision on February 14, 2024, which are available at:

Re Shogilev 2024 CIRO 24

In its reasons for decision, the hearing panel confirmed the sanctions imposed on Norman Shogilev. In particular:

1. 1. 1. the completion of an ethics or other industry course acceptable to CIRO Staff within 12 months of the date of acceptance of the Settlement Agreement; and
      2. a fine in the amount of $25,000.

Norman Shogilev is also required to pay costs in the amount of $5,000.

The alleged violations occurred while Norman Shogilev was a Registered Representative with Investors Group Financial Services Inc, in Burlington, Ontario.

All information about disciplinary proceedings relating to current and former member firms and individual registrants under the Investment Dealer and Partially Consolidated Rules (for investment dealers), the Mutual Fund Dealer Rules (for mutual fund dealers) and the Universal Market Integrity Rules (UMIR) is available on CIRO's website. 

Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by CIRO-regulated investment firms is available free of charge through the AdvisorReport service. Information on how to make dealer, advisor or marketplace-related complaints is available by calling 1-877-442-4322.

CIRO investigates possible misconduct by its member firms and individual registrants. It can bring disciplinary proceedings which may result in sanctions including fines, suspensions, permanent bars, expulsion from membership, or termination of rights and privileges for individuals and firms.

The Canadian Investment Regulatory Organization (CIRO) is the national self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada's debt and equity marketplaces. CIRO is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians' trust in financial regulation and the people managing their investments. For more information, visit www.ciro.ca.

SOURCE Canadian Investment Regulatory Organization (CIRO)

Joanna Nicholson, Manager, Corporate Communications and Public Affairs, [email protected]