The B.C. Securities Commission has levied more than $126,000 in fines and costs at Victoria investment adviser Carolann Steinhoff for making recommendations to a Victoria couple that were not suitable for their investment objectives.
In a decision released Friday, the BCSC ordered Steinhoff to pay a $100,000 fine, $20,000 in costs and the $6,813 in commissions earned through trades using the couple's investment fund.
It’s the same financial penalty that the Investment Industry Regulatory Organization of Canada had imposed in July 2012. IIROC, however, also called for Steinhoff to be suspended from trading for a year. Steinhoff appealed those decisions to the BCSC. In ruling on that appeal, the BCSC did not seek a suspension.
In a statement, the commission said “the penalty we are imposing is appropriate in the circumstances and will adequately deter Steinhoff and other registrants from failing to meet suitability requirements.”
In August 2013, the BCSC said it agreed with IIROC’s finding that Steinhoff, while working for Wellington West Capital, committed a number of infractions while handling the investments of a Victoria couple in 2008.
IIROC, the self-regulatory organization that oversees stock brokers in Canada, found that Steinhoff failed to obtain approval for stock trades and traded on margin, which exposed the clients to greater risk.
Steinhoff also recommended the couple hold their investments, which were taking losses in late 2008, despite knowing they needed money to buy a new home, IIROC found. The couple lost nearly $70,000 of the $125,000 they invested with Steinhoff.
BCSC spokesman Richard Gilhooley said Steinhoff does have recourse to appeal the BCSC’s decision in the courts.
Steinhoff could not immediately be reached for comment Friday.
IIROC has twice previously found Steinhoff broke industry rules and levied penalties. However, in each case, the penalties were thrown out by the BCSC on appeal.
