(November 29 – 11:30 ET) – The Ontario District Council of the Investment Dealers Association of Canada has imposed discipline penalties on Andris Gravitis, a former rep with Foster and Associates Financial Services Inc.

Gravitis was fined $16,500 and ordered to rewrite the Conduct and Practices Handbook for Securities Industry Professionals. He must also pay the association’s costs of $5,000.

Gravitis admitted that he failed to ensure that the recommendations made for the accounts of two separate clients were in keeping with the clients’ objectives. He also admitted that the he supplied false and misleading information on the New Client Information Forms of two clients.

The IDA drew attention to the plight of one of Gravitis’ clients who transferred an account to Foster and Associates Financial Services Inc. in the fall of 1995 in order to remain with Gravitis.

New Client Account Forms were made out for the client after the transfer. The client’s form indicated that the investment objectives were 50% income and 50% long-term capital, and the risk tolerance was 20% low, 50% medium and 30% high.

Gravitis decreased the quality of this client’s portfolio such that the original value of the portfolio of $400,000 in 1984 was reduced to $140,643.81 by Dec. 31, 1995. Blue chip equities originally in the portfolio were replaced with a number of speculative securities. This client launched a civil law suit in relation to the investment portfolio; the law suit was settled.

Gravitis also agreed that he failed to ensure proper account documentation existed for the account of a client giving her spouse a trading interest in the account, and that he marked trade tickets “unsolicited” when they were in fact “solicited”.

Gravitis is currently registered with Rampart Securities Inc.
-IE Staff