If you found out your doctor had been permanently banned from practicing medicine, would you want her to be your pharmacist?
Likely not. But an Advisor.ca investigation has identified nine cases between 2013 and 2015 where reps were permanently banned by their SRO and remained authorized to sell life insurance products for periods ranging from six months to years after. Of those nine, five are still authorized to sell today (Sept. 14, 2016).
As part of that investigation, Advisor.ca combed through all the people who appeared in IIROC and MFDA’s enforcement reports from 2013 to 2015. That means we reviewed more than 250 cases.
We wanted to highlight two that were particularly egregious: one was disciplined by IIROC, the other by the MFDA. In both cases, the person disciplined is still currently authorized to sell insurance products.
Misconduct* occursFebruary 2013 to April 2014
Renews FSCO licenceSeptember 2014
IIROC registration endsJanuary 2015
IIROC hearing panel imposes fine and permanent banAugust 2015
Online resume posted; licensee touts CPA and holds self out as “Senior Investment Advisor”November 2015
Continues to hold valid CPAMay 2016**
Earliest renewal date for FSCO insurance licenceJuly 2016
Expiry of FSCO insurance licenceSeptember 2016
*Deemed as such by IIROC.
**as of May 18, 2016.
Sources: IIROC settlement agreement;
Misconduct* occursSeptember 2005 to 2008
MFDA investigation begins2009
MFDA releases decision imposing fine and permanent ban effective June 2013June 2014
Renews FSCO insurance licenceSeptember 2015
Earliest renewal date for FSCO insurance licenceJuly 2017
Expiry of FSCO insurance licenceSeptember 2017
*Deemed as such by MFDA.
Sources: MFDA enforcement database;
What can be done about this? Read our recommendations.