Your group has been assigned a disciplinary case that either has been or is currently being dealt with by IIROC. Carefully read all the relevant details of your case. In your report you must explain:

a) Count 1: In March and April 2016, the Respondent recommended the purchase and holding of securities that were unsuitable for a client, pursuant to this clients investment objectives, thus contravening IIROC Dealer Member Rule 1300.1(q);

b) Count 2: In December 2015, the Respondent engaged in personal financial dealings with a client by accepting the offer of a short-term loan proposed by the client for an imminent real estate transaction, thus contravening IIROC Dealer Member Rule 43.

a) The Respondent has been a Registered Representative with IIROC, as well as its predecessor, the Investment Dealers Association of Canada (IDA), since 1998;

b) The Respondent has been registered and employed with Scotia Capital Inc. (Scotia) since January 2009;

c) The Respondent has no disciplinary history with IIROC; Particulars The client FS

d) On or around March 1st, 2016, the client FS opened an account with the Respondent;

e) The Respondent knew client FS very well, through family and social relations;

f) The account was an in trust account, for and in the name of FS minor daughter;

Type: Cash Birth year: 1984 Civil status: Married Dependent(s): 1 Occupation: Homemaker Investment experience: generally fair Assets and margin: fair Mutual funds, fixed income, options, short selling: Poor/none, Investment Objectives: 100% long-term capital gains, Risk tolerance: 100% moderate, Annual income: $0, Liquid assets: $10,000, Fixed assets: $0

h) During the months of March and April 2016, the Respondent executed only the following trades in the clients account:

March 17, 2016 Valeant Pharma

April 7, 2016 valeant pharma

April 8,2016 valeant pharma

April 8, 2016 Sun Edison Inc.

April 14, 2016 Sun Edison Inc.

April 15, 2016 SunEdison Inc

i) These trades were not suitable for FS taking into account, in particular, the risk tolerance factors and investment objectives set out by FS when she initially signed the account opening form;

j) On June 28, 2016, FS opened an account with the iTRADE discount brokerage division of Scotia;

k) On or around June 30, 2017, following a complaint filed by FS, Scotia indicated that these two securities did not meet the clients profile according to her record;

l) On March 29, 2019, Scotia sent a letter to the Respondent regarding the above-mentioned conduct;

m) The Respondent subsequently compensated FS for an amount of $3,825, in accordance with the offer made by Scotia and accepted by FS; The client GB

n) GB became a client of the Respondent in 2005 and, over the years, developed ties of friendship with the Respondent and her family;

o) In December 2015, the Respondent accepted a short-term bridge loan offered by GB for Re Sabet 2021 IIROC 03 Page 3 of 11 the amount of $200,000, in order to proceed with an imminent real estate transaction;

p) The Respondent reimbursed GB in full on February 9, 2016, prior to the real estate transaction to be completed before notary on February 19, 2016;

q) The Respondent admitted having accepted to receive a short-term loan from GB without her employers knowledge and agreed to pay an internal penalty of $5,000, imposed by Scotia.

Answer the following questions:

1. The events and actions that led to this disciplinary process.
2. How the ( alleged) offender should have acted/behaved in their particular situation to avoid the action being taken by IIROC?
3. Did any principals of conducts get violated?