The Investment Industry Regulatory Organization of Canada (IIROC) has reached a settlement with former advisor Kurt Andrew Haller, who admitted to making unsuitable recommendations and excessive trading. As part of the settlement, Haller agreed to a three-year suspension, a fine of $109,500 and $5,000 in costs.
According to the settlement, Haller recommended several high-risk securities to an elderly client (a retired, 89-year old widower) between June 2010 and April 2014 that were not suitable given the client’s investment objectives and risk tolerance. Specifically, the client’s account had an excessive concentration in the energy and mining sectors, as a result of the unsuitable recommendations.
Haller also admitted to excessive trading in the same client’s account solely to generate trading commissions. In particular, the settlement says that in 2012, Haller executed 152 trades in the client’s account, with those trades amounting to $2.9 million in annual value, more than six times the average value of the account during the year, which was $436,700.
Also, during that year, the value of the account declined by approximately $102,900 (including approximately $45,800 in commissions), during a time when the S&P/TSX composite index rose by 4%.
The misconduct occurred when Haller worked in the Ottawa branch of Argosy Securities Inc. He resigned from the firm in April 2015, and is currently not registered after almost 30 years as a rep (he was first registered in 1986).
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