CIRO Hearing Panel issues Reasons for Decision in the matter of Stephen Joseph Talosi

TORONTO, Feb. 13, 2024 /CNW/ - Following a settlement hearing under the Mutual Fund Dealer Rules held on August 21, 2023, in Toronto, Ontario, a hearing panel of the Canadian Investment Regulatory Organization (CIRO) found that Stephen Talosi sent confidential client information to a third party without ensuring that the clients had provided prior consent; he accessed the system of another MFDA Member using login credentials that were provided to him by an Approved Person registered with the other Member, and sent confidential client information from the system to a third party, without the other Member's knowledge or consent; and he misled the Member during its investigation into his conduct.

The hearing panel issued its reasons for decision on January 19, 2024 which are available at:

Re Talosi 2024 CIRO 11

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

• a prohibition from conducting securities related business in any capacity while in the employ of or associated with any Dealer Member of CIRO registered as a mutual fund dealer for a period of 12 months;
• a fine of $40,000; and
• Stephen Talosi shall complete the Ethics and Professional Conduct Course offered by the IFSE Institute, or an ethics course acceptable to Staff of CIRO, prior to becoming re-registered as a dealing representative with a Dealer Member of CIRO registered as a mutual fund dealer.

Stephen Talosi is also required to pay costs in the amount of $5,000.

During the period described in the Settlement Agreement, Stephen Talosi carried on business in the Welland, Ontario area.

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)