The Investment Industry Regulatory Organization of Canada (IIROC) has fined an Alberta rep $60,000 for failing to ensure his recommendations were suitable for his client.

On October 17, an IIROC hearing panel accepted a settlement agreement, with sanctions, between IIROC staff and Douglas Allan.

The violations occurred when Allan was a registered representative and president with the Red Deer, Alta. branch of Retire First Ltd.

In the settlement, Allan admitted that between February 2008 and September 2011 he failed in his know your client obligations and failed to ensure that recommendations were suitable for his client, who is a senior. IIROC noted that the holdings in the client’s account declined in value by 28% during a time period when the S&P/TSX Capped Composite Total Return Index increased by 7.7%.

As penalty, Allan agreed to pay a $60,000 and re-write the Conduct and Practices Handbook exam. He also agreed to pay costs in the amount of $10,000.

Allan is still registered at Retire First Ltd.