The Investment Industry Regulatory Organization of Canada (IIROC) has fined a former registered representative in British Columbia and a branch manger in Quebec.

On May 21, an IIROC hearing panel in Vancouver accepted a settlement agreement, with sanctions, between IIROC staff and Henry Martens.

IIROC formally initiated the investigation into Martens’ conduct in February 2012. The alleged violations occurred between January 2007 and June 2009 when he was a rep the Kelowna, B.C. branch of Wolverton Securities Ltd.

Martens admitted that he failed to use due diligence to know the essential facts relative to two of his customers and to ensure that the recommendations he made for them were suitable.

As penalty, Martens agreed to a $50,000 fine and a one-year suspension of approval in any capacity. He also agreed to pay $5,000 in costs.

Martens is no longer a registrant with an IIROC-regulated firm.

On May 14, an IIROC hearing panel in Montreal accepted a settlement agreement, with sanctions, between IIROC staff and Guy Brunet.

IIROC began its investigation into Brunet’s conduct in November 2009. The alleged violations occurred between 2004 and 2009 when Brunet was a registered rep and branch manager of the Montreal branch of Canaccord Capital Inc.

Brunet admitted that he did not use due diligence and failed to perform his supervisory duties adequately relative to the trades effected by two representatives.

As penalty, Brunet agreed to a $40,000 fine, a three-year temporary prohibition from approval as a supervisor, and the obligation to pass the Branch Managers Course before applying for reapproval as a supervisor. He also agreed to pay $5,000 in costs.

Brunet is no longer a registrant with an IIROC-regulated firm.