IIROC suspends, fines rep $120,000 for unsuitable investments, discretionary trading

Following a penalty hearing held on March 7, 2017, a hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) imposed the following penalties on Jamie Peter Yaskiw:

• a fine of $120,000;
• a two-year suspension from registration in any capacity with IIROC;
• strict supervision for 18 months upon any re-registration; and
• a successful completion of the conduct and practices handbook course following the conclusion of the suspension period.

Yaskiw is also required to pay costs of $25,000.

In an earlier decision dated December 5, 2016, the hearing panel found that Yaskiw acted contrary to IIROC dealer member rule 1300.1(a), 1300.1(q), and 1300.4. Yaskiw was found to have failed to know his clients, made unsuitable recommendations and engaged in discretionary trading with respect to the accounts of three clients.

As a result of Yaskiw’s investment recommendations, a Saskatchewan couple planning to retire lost $125,000 of their savings, says IIROC, which finds Yaskiw frequently traded in high-risk securities, largely in the energy sector, and employed speculative short-selling strategies in the couple’s accounts — an investment strategy that wasn’t suitable for clients entering their retirement years.

In addition, IIROC says Yaskiw didn’t obtain written authorization from the couple to conduct discretionary trading in their accounts. It adds another client — a Calgary woman — lost approximately $41,000.

IIROC formally initiated the investigation into Yaskiw’s conduct in December 2014. The conduct occurred while he was a registered representative with the Calgary branch of Wolverton Securities Ltd., an IIROC-regulated firm. Yaskiw is no longer a registrant with an IIROC-regulated firm.

Read the full penalty decision.

Staff

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