BC rep fined $50,000 for client neglect

By Staff | May 18, 2012 | Last updated on May 18, 2012
2 min read

On April 25, 2012, a hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a settlement agreement between the IIROC staff and Syvert Mytting.

Mytting admitted he promised to guarantee the future value of one client’s account, and then assumed a personal interest in the account. He also admitted his recommendations to five other clients to use leveraged loans to fund their investment accounts were unsuitable.

Specifically, Mytting admitted to the following:

(a) In August 2007, he acted contrary to IDA By-law 29.1 (now IIROC Dealer Member Rule 29.1) by personally guaranteeing the future value of a client account without the authorization of his firm, entering into personal financial dealings with the client and obtaining a potential interest in the client’s account by claiming any funds, in excess of the original account value in the account on a future date, for himself.

(b) In 2006 and 2007, he acted contrary to IDA Rule 1300.1 (q) (now IIROC Rule 1300.1 (q)) in relation to five clients by recommending they fund part of their investment portfolio using leveraged investment loans to extents which were not suitable for the clients.

Pursuant to the settlement agreement, Mytting agreed to the following penalty:

(a) A five-year suspension from registration in any capacity with IIROC; and

(b) A $50,000 fine.

Mytting also agreed to pay costs in the amount of $20,000.

IIROC formally initiated the investigation into Mytting’s conduct in May 2008. The alleged violations occurred when he was a registered representative with the Abbotsford, British Columbia Branch of Berkshire Securities Inc. (now Manulife Securities Incorporated).

Mytting has not been registered in any capacity with an IIROC Dealer Member since December 2007.

Read the settlement agreement.

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The staff of Advisor.ca have been covering news for financial advisors since 1998.