An Investment Industry Regulatory Organization of Canada (IIROC) hearing panel has banned a former investment advisor in Fredericton for five years and fined him $150,000 for engaging in unauthorized trading, excessive trading and making unsuitable recommendations to a senior client.
Robert Adrian Crandall, formerly with Wellington West Capital Inc. and its successor National Bank Financial Ltd. has also been ordered to pay $35,000 in costs. If he returns to the investment industry, he would also be subject to strict supervision for 18 months and required to pass the Conduct and Practices Handbook Course exam.
The sanctions stem from a disciplinary proceeding, which found that Crandall engaged in excessive and unauthorized discretionary trading in a client’s account over a six-year period and that he made unsuitable recommendations over a three-year period.
The IIROC hearing panel noted in its decision that Crandall was a member of IIROC’s New Brunswick District Council when the misconduct occurred.
“As a member of the Council, the respondent adopted an inexcusable conduct as he was in a position to represent the authority of IIROC, but did not exercise due diligence in regards to IIROC’s rules,” the hearing panel said in its decision, citing this as an aggravating factor in the case.
The hearing panel also noted that Crandall has not shown any remorse or regret for his misconduct.
Given these factors, and the details of the case, the hearing panel ruled that both a fine and a suspension was warranted; as a result, it granted all of the sanctions IIROC staff had sought.
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