The Investment Industry Regulatory Organization of Canada (IIROC) has fined former a former Ontario registered representative a total of $85,000 for conducting outside business activities at two different firms and compensating a client.
According to IIROC’s notice of hearing, Craig Hodge engaged in outside business activities between 2003 and 2011 while a registered rep and branch manager at Assante Capital Management Ltd. and as a rep and supervisor with IPC Securities Corp.
Between 2007 and 2011, Hodge made trades through discount brokerages on behalf of a client without the knowledge of either Assante or IPC. Furthermore, some of the transactions were options trades, which Hodge was not licensed to do.
In 2008, Hodge offered to compensate the client for losses, according to IIROC. In total the client lost $430,000 as a result of trades. Hodge did not profit in any way from the trades, according to the self-regulatory body.
Specifically, Hodge was fined $45,000 for outside business activities done during his employ at Assante, $30,000 for his activities as a registered rep with IPC and $10,000 for offering compensation to a client.
In addition to the fines, Hodge is banned from registering with an IIROC firm in any capacity for one year. If Hodge chooses to return to the industry he must first rewrite the Conduct and Practices Handbook exam and be strictly supervised for 12 months.
IIROC also order Hodge to pay $5,000 in costs. He is no longer a registrant with an IIROC
-regulated firm.