The Investment Dealers Association of Canada (IIROC) has fined a rep and his branch manager over the handling of two client accounts.
On April 21, an IIROC hearing panel accepted a settlement agreement with sanctions, between IIROC staff and Thomas Dun and Gordon Wimble.
The violations occurred between April 2009 and December 2010 when Dunn was a registered representative with the Winnipeg branch of CIBC World Markets Inc., where Wimble was a branch manager.
Dunn admitted that he failed in his know your client (KYC) obligations with respect to two clients, and made unsuitable recommendations that were inconsistent with their personal and financial circumstances.
One client, as 37-year old nurse had limited experience with financial investments. The other client was a 64-year old widow with limited financial knowledge, who had relied on her husband to handle all her finances.
Wimble admitted that he failed to properly supervise Dunn in the handling of the two clients.
Dunn agreed to pay a $65,000 fine, successfully rewrite the Conduct and Practices Handbook exam, undergo six months of close supervision and pay $5,000 in costs.
Wimble agreed to $20,000 fine and costs of $2,500. In the event of a return to the industry he must rewrite the Branch Manager’s exam, and must not act in a supervisory role for six months.
Dunn is still employed as a rep at CIBC World Markets, but Wimble is no longer registered with an IIROC firm.