A former registered representative of the Quebec branch of TD Evergreen or Canaccord Capital is found to have made 124 trades in the account of a deceased client from a third unauthorized person.

The Investment Industry Regulatory Organization of Trade (IIROC) finds that Stéphane Rail, a resident of Quebec, did not demonstrate due diligence to learn essential facts relative to his client and the person authorized to behalf of his client. It is also found to have obstructed the investigation of IDA, which is now IIROC.


The first two violations occurred between September 1995 and March 2001. His client has since died December 2, 1994. However, during this period, he trades in the account without the necessary permits. IIROC opened the investigation into the conduct of Stéphane Rail in November 2009.

While it is questioned as part of a civil trial, Stéphane Rail oath and have repeatedly communicated with his client instructions regarding the account of another person and says that the opening of the third party’s account is made through the client. During that same interview, Stéphane Rail however confronted with the fact that his client died.

“Stéphane Rail learned of the death of [the client] in 2001-2002, more than six years after opening the account [of others]. The evidence is convincing that the respondent failed to exercise due diligence to know the essential facts relating to the account [third], particularly the death of [his client], “we read in the judgment of IIROC .

With this information, IIROC investigators decide to remove the three charges for which Stéphane Rail was found guilty. Although he received notification of the notice of disciplinary hearing, Stéphane Rail was absent and could not deliver his version of events.

Stéphane Rail is no longer a registrant with an IIROC-regulated firm. A separate hearing, set at a later date, will be held to determine the sanctions to be imposed on Stéphane Rail.

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