An Investment Industry Regulatory Organization of Canada (IIROC) hearing panel has accepted a settlement agreement between Robert Lewis, an investment advisor in Vancouver, and the self-regulatory organization (SRO) requiring Lewis to pay a fine of $175,000, which includes disgorgement of fees, and costs of $20,000.

Lewis has also agreed to a suspension of five years from registration in any capacity with IIROC and to strict supervision for one year should he re-register with the SRO following his suspension.

The penalties relate to five infractions committed between 2008 and 2012 when Lewis was an advisor with Manulife Securities Inc.

Lewis admits to contravening IIROC’s dealer member rules and his own firm’s policy when he prepared tax returns for his clients and charged a fee for that service without formally notifying or seeking written approval of his firm. Although Lewis had been providing this service since at least 2004, IIROC’s decision focuses on his actions between 2008 and 2011. During the latter time period, Lewis collected approximately $58,000 in fees for his services.

The advisor also engaged in personal financial dealings with five clients between 2008 and 2012. In most cases, Lewis provided money from his own credit union account to help clients who were short on funds. In every situation, he did not obtain the approval of Manulife to help clients in this way.

Lewis’ third infraction relates to his attempt to settle a client’s complaint between September and December 2011 without the approval or knowledge of his firm.

Lewis also admitted to making improper use of monies from clients’ credit union accounts held outside of his firm. The settlement agreement notes that Lewis had access to approximately 75 credit union accounts held by clients who wanted access to deposit products available at that credit union but not offered through Manulife.

Lewis transferred a total of more than $35,000 from different client accounts to his own account at that same credit union. This occurred on at least 40 occasions between 2008 and 2012. Lewis claimed the funds were transferred as payment for ongoing investment-counselling services.

“The respondent did not obtain the clients’ consent to charge the fees and did not obtain the clients’ consent to transfer money from their credit union accounts to pay for those fees,” states the settlement agreement. “The clients say that they were not aware that any fees were being charged.”

Lewis also did not seek the written approval of Manulife prior to charging those fees.

Lewis’ final infraction was that he convinced clients to pre-sign blank forms between 2008 and 2012. Those forms would be completed by Lewis or on his instructions after he had received verbal instructions from a client regarding a transaction. He continued this practice even after his firm’s compliance department had warned him in or around June 2010 that the possession of pre-signed client forms was prohibited.

The settlement agreement states that Lewis was first registered in the securities industry in 1988 and registered with the Investment Dealers’ Association, IIROC’s predecessor, in 1999.

Lewis worked with Manulife between April 16, 2004 and April 12, 2012. It was on or around the latter date that the firm terminated him. Lewis was registered with Raymond James Ltd. after April 13, 2012, although IIROC notes that his infractions are solely related to his time with Manulife. He is currently not a registered representative with an IIROC-regulated firm.