The Investment Industry Regulatory Organization of Canada has sanctioned a Vancouver broker for compensating clients for financial losses, without the knowledge of his firm.

IIROC began the investigation into the conduct of Hung Fai Raymond Kwok on Nov. 3, 2009. The violations occurred in 2007 when Kwok was a registered representative with a Vancouver area office of HSBC Securities (Canada) Inc.

In a settlement agreement accepted by an IIROC hearing panel, Kwok admitted he personally compensated three clients for financial losses, without the knowledge or consent of his firm, The losses were incurred after the clients acted on Kwok’s advice.

As part of the penalty, Kwok agreed to:
> pay a $15,000 fine and $3,000 in costs;
> a suspension from being registered with IIROC in any capacity for a period of six months beginning July 29, 2010;
> re-write and pass the Conduct and Practices Handbook examination prior to being eligible for any future IIROC registration; and
> work under close supervision for 12 months upon being registered with IIROC in any capacity.

Kwok is no longer registered with an IIROC-regulated firm.

IE