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On March 29, 2013, a hearing panel of the Investment Industry Regulatory Organization of Canada accepted a settlement agreement, including penalties, between IIROC staff and Daniel Bergeron.

IIROC says he admitted he failed to use due diligence when he recommended a private placement to his clients without verifying its nature or doing adequate follow-up, and without informing his employer.

Specifically, Bergeron admitted to the following violations:

  • Between 2002 and 2009, Bergeron—a registered representative with CIBC World Markets—recommended and suggested investments in Ressources Dasserat stock to seven of his clients. He failed in his role of gatekeeper by not using due diligence to verify the nature of the investment and by not doing adequate follow-up of his clients’ investments subsequently, contrary to IIROC Dealer Member Rule 29.1 [IDA By-law 29.1 prior to June 1, 2008];
  • Between June 2002 and September 2003 approximately, Bergeron facilitated a purported purchase by seven of his clients, of stock in Ressources Dasserat, in a private off-book investment, which constituted an outside business activity without the knowledge of his firm, contrary to IIROC Dealer Member Rule 29.1 [formerly IDA By-Law 29.1].

Read:

Pursuant to the settlement agreement, Bergeron agreed to the following penalties:

  • A fine in the amount of $40,000; $20,000 on count A and $20,000 on count B;
  • A 60-day suspension from approval in any capacity;
  • A six-month period of close supervision once the suspension is lifted; and
  • As a condition for continued approval, successful completion of the Conduct and Practices Handbook (CPH) Course within one year of the decision to be rendered in the matter of this settlement agreement.

Bergeron will also pay costs in the amount of $5,000.

Read the settlement agreement and decision documents.

IIROC formally initiated the investigation into Bergeron’s conduct in April 2010. The violations occurred when he was a registered representative with the Québec City branch of CIBC World Markets Inc., an IIROC-regulated firm. Bergeron is no longer a registrant with an IIROC-regulated firm.

Originally published on Advisor.ca
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