held-responsible-regulators

Following a disciplinary hearing held from October 1-4, 2012 in Edmonton, Alberta, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC), found that Charles B. Floyd made unsuitable recommendations and discretionary purchases in a client's account and that James Gordon McDonald failed to supervise the account.

The panel's decision dated January 22, 2013 is available here.

Specifically, the panel found that Mr. Floyd and Mr. McDonald committed the following violations:

(a) Between April and December 2008, Mr. Floyd acted contrary to IIROC Dealer Member Rule 1300.1 (q) by failing to ensure recommendations he made for a client were suitable for the client.
(b) Between September and November 2008, Mr. Floyd acted contrary to IIROC Dealer Member Rule 1300.4 by using discretion with respect to purchases in a client account.
(c) Between April and December 2008, Mr. McDonald acted contrary to IIROC Dealer Member Rule 1300.1 (p) and IIROC Dealer Member Rule 2500 by failing to adequately supervise a client account to ensure that holdings in the account were suitable for the client.

A separate hearing will be held to determine the penalty to be imposed on Mr. Floyd and Mr. McDonald. The date will be made available at www.iiroc.ca.

Documents related to ongoing IIROC enforcement proceedings — including Reasons and Decisions of Hearing Panels — are posted on the IIROC website as they become available. Click here to search and access all IIROC enforcement documents.

IIROC formally initiated the investigation into Mr. Floyd's conduct in May 2009 and into Mr. McDonald's conduct in March 2009. The alleged violations occurred when they were Registered Representatives with the Edmonton branch of Union Securities Ltd., an IIROC-regulated firm. Mr. Floyd and Mr. McDonald are both Registered Representatives at Wolverton Securities Ltd., an IIROC-regulated firm.

Originally published on Advisor.ca

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