A hearing panel of the Investment Industry Regulatory Organization of Canada has been permanently banned a British Columbia broker for refusing to co-operate with an IIROC investigation.

Following a disciplinary hearing held on November 4 in Vancouver, the hearing panel found that David Kenneth Smith, a registered represtative (options) with Northern Securities Inc., failed to attend and give information in respect of an IIROC investigation.

IIROC was investigating complaints from two of Smith’s clients regarding unsuitable and unauthorized investments that he made on their behalf.

The hearing panel imposed the following penalties against Smith:

• a $50,000 fine;
• a permanent ban on registration in any capacity; and
• costs in the amount of $4,329.00.

IIROC formally initiated the investigation into Smith’s conduct on July 31, 2008. He is no longer registered in any capacity with an IIROC-regulated firm.

The hearing panel issued its decision and reasons on November 9.

IE