A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has handed a five-year ban and penalties and costs totalling $72,500 to a former advisor for trades based on non-public information.
Christian Desmarais, a former advisor with Desjardins Securities Inc. in Drummondville, Que., admitted to failing in his duty to protect the financial markets when he bought shares in Rona Inc. in his own account and in that of a client, and thereafter received related information from the client that hadn’t been made public.
Desmarais also admitted to recommending the same investment to three clients after receiving the undisclosed information, the settlement agreement said.
The infractions occurred between Jan. 28 and Feb. 2, 2016.
After buying the Rona shares for himself and clients, Desmarais sold them at a gain on Feb. 3, 2016, earning $30,000 after tax, the settlement agreement said.
In addition to the five-year ban, which began on Feb. 24, 2016, Desmarais was fined $40,000, and ordered to pay disgorgement of $30,000 and costs of $2,500.
If he re-registers, he’ll be under strict supervision for 12 months.
For full details, read the settlement agreement.