(July 25 – 11:50 ET) – The Nova Scotia District Council of the Investment Dealers Association of Canada has imposed discipline penalties on Peter Radoslaw Przygoda. During the relevant time period, Przygoda was employed by FCG Securities Corp., a related company of Midland Walwyn Capital Inc., and then by Gordon Private Client Corp.
The council found that Przygoda failed to use due diligence to learn the investment objectives of a client.
In late 1995, Przygoda commenced employment with the Halifax office of FCG Securities Corp. That office was later acquired by Gordon Private Client Corp/. As of late 1995, Przygoda had advised the client for a period of approximately two years. When the client’s accounts were transferred to FCG, Przygoda recommended that she sell the original holdings, and place substantially all of her invested capital in a small number of junior mining stocks.
The client was a conservative investor who sought a well-balanced portfolio and was not made aware of the risks involved in the recommended securities. The client was of modest means, with dependent children, and “could not possibly withstand the risks associated with the volatility in the resources investment marketplace”. The council concluded that Przygoda failed to meet an acceptable “know the client” standard.
Przygoda receives a fine of $5,000; a $2,500 disgorgement of commissions; a prohibition on re-approval until the fine, disgorgement and costs are paid; a requirement that, prior to re-approval, he successfully complete the Conduct and Practices Handbook Course exam; and a requirement that, upon re-approval, he be subject to strict supervision for a period of six months. Przygoda was also ordered to pay $2,500 towards the IDA’s costs.
For a complete Summary of Facts, please see IDA Disciplinary Bulletin No. 2747 at www.ida.ca.
-IE Staff