The Investment Industry Regulatory Organization of Canada (IIROC) has fined a former Ancaster, Ont. broker $75,000 and permanently banned him from registration for several rule violations

On April 30, an IIROC hearing panel accepted a settlement between IIROC staff and Glenn Taggart. Taggart admitted that he conducted unauthorized trading; that he made recommendations for several clients that were not suitable for them; that he placed himself in a conflict of interest with a client; and that he engaged in personal financial dealings with certain of his clients.

According to the settlement agreement, Taggart executed numerous trades in the accounts of 12 clients without their authorization.

He also recommended a series of five securities for the 12 clients that were unsuitable for them based on their personal circumstances and factors including the particular client’s financial situation, investment knowledge, investment objectives, and risk tolerance.

In the case of one of the 12 clients, Taggart placed himself in a conflict of interest when he purchased shares of a certain security for this client’s accounts on the same day that he sold shares of the same security in his own personal accounts.

In the case of three of the 12 clients, and one additional client, Taggart engaged in personal financial dealings with these clients when he gave them certificates for shares of one of the five securities in question, for which these clients did not pay.

The conduct occurred between January 2009 and December 2013 while Taggart was a registered representative with the Ancaster, Ont. branches of Dundee Securities Corp. and its successor DWM Securities, Wellington West Capital Inc. and its successor National Bank Financial, and Burgeonvest Bick Securities Ltd., all IIROC-regulated firms at the relevant times. Throughout the period of his registration with each of the firms, his office was physically located at the same street address and in the same office building.

As penalty, Taggart agreed to a permanent ban from registration with IIROC; and a fine of $75,000 fine, inclusive of disgorgement. He also agreed to pay $15,000 in costs.

IIROC initiated its investigation into Taggart’s conduct in June 2013. He is no longer a registrant with an IIROC-regulated firm.