A hearing panel of the Investment Industry Regulatory Organization has sanctioned a Global Securities Inc. manager for failing to reasonably supervise certain staff members with respect to two client accounts.
Douglas Ralph Garrod has agreed to a penalty of a $65,000 fine and $5,000 in costs.
In the settlement agreement, Garrod admitted that he failed to reasonably supervise registered representative Carol Ann Zosiak and chief compliance officer John Brighten with respect to two client accounts to ensure that Zosiak performed sufficient due diligence on the beneficial owners of these two accounts and the trading within those accounts.
The violations occurred between October 2005 and June 2006, while Garrod was the ultimate designated person with the Vancouver branch of Global Securities.
IIROC began the investigation into Garrod’s conduct in January 2011. He is still the ultimate designated person with the same firm.