A former father and son advisor team from Whitehorse must pay a total of $35,000 to the Toronto-based Investment Industry Regulatory Organization of Canada (IIROC) for selling prospectus exempt securities to unqualified clients.
According to IIROC’s settlement agreement, between July 2010 and January 2011 Ivan Jacobsen and his son, Keith Jacobsen, sold exempt securities to approximately 21 clients who did not meet the “accredited investor” definition. These clients made roughly 31 purchases for a total of $167,758. The average purchase made, according to IIROC, was $5,400.
During this time, both father and son worked with Canaccord Capital Corp. Neither person is currently registered with an IIROC member firm.
As well, IIROC also found that between September 2007 and June 2008, while Keith was temporarily out of the business, Ivan had an assistant who accepted trading instructions and placed orders for clients before he was licensed.
IIROC fined Ivan $25,000 and ordered Keith to pay $15,000. In addition to the fines, both individuals must pay back the $2,096 they each earned in commission and before re-registering with a member firm they must complete the Conduct and Practices Handbook Course. As well, both father and son must pay $2,500 each in costs.
Ivan is also permanently prohibited from acting as a supervisor for a dealer member firm.