(July 26 – 11:10 ET) – The Ontario District Council of the Investment Dealers Association of Canada has imposed discipline penalties on Frederick Monte Ponech at the relevant time a Registered Representative with Merit Investment Corp.
The council found that in May 1997 Ponech failed to use due diligence to ensure that every order accepted for the account of a client was within the bounds of good business practice when he exceeded his mandate and invested over $10,000 in speculative investments.
He also failed to use due diligence to ensure that recommendations made for the client’s account were appropriate for the client and in keeping with the client’s investment objectives.
Ponech was fined $6,500 and given a supervision order requiring a monthly review of his trades for six months. He was also ordered to cover the $4,000 cost of the investigation. He must re-write and pass the Conduct and Practices Handbook examination administered by the Canadian Securities Institute.
For a complete Summary of Facts, please see IDA Disciplinary Bulletin No. 2751 at www.ida.ca.
-IE Staff