Earl Jessiman, Decision 14-0131
A branch manager reached a settlement agreement with IIROC whereby he agreed to a fine of $20,000, $2,000 in costs and a 12 month suspension from acting in any supervisory capacity.
He had been a longstanding branch manager of an investment advisor who, following an IIROC disciplinary hearing, was found to have made unsuitable recommendations.
The branch manager’s admissions related to the activities in one joint margin account of a couple aged 47 at its inception and which included family lottery winnings. The Branch Manager admitted that he failed to adequately supervise. The activities in the joint margin account were described as over concentrated in income trusts, energy and resource with “excessive” high risk and margin.
He admitted that the new client application forms did not adequately reflect the risk of the investments in the margin account, though based upon the risk ratings applied by IIROC staff. He also admitted to not adequately questioning the investment advisor regarding the margin account and not providing sufficient documentary evidence that he questioned him.
A full copy of the Settlement Agreement can be found here.