Branch manager fined $20,000, demoted

On March 28, 2012, a hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a settlement agreement between the IIROC staff and Paul Laverne Johnson.

Johnson admitted he relied upon a registered representative to such a degree that he failed to adequately supervise the account activity of one of the representative’s clients.

Specifically, Johnson admitted to the following violation:

(a) From or about June 2003 to December 2008, Johnson failed to adequately supervise the account activities of a client of a registered representative to ensure the recommendations made were appropriate for the client, contrary to Association Regulation 1300.2 & Policy No. 2 and IIROC Rules 1300.2 & 2500.

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

(a) a $20,000 fine.

Johnson also agreed to pay costs in the amount of $1,000.

IIROC formally initiated the investigation into Johnson’s conduct in May 2009. The conduct occurred while he was a branch manager with the Kelowna branch of Raymond James Ltd., an IIROC-regulated firm. Johnson, while still a registrant with the same branch in the capacity of a registered representative, is no longer a branch manager.

Read the settlement agreement.

Staff

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