The Toronto-based Investment Industry Regulatory Organization of Canada (IIROC) has fined registered representative Glenn Taggart $15,000 for engaging in discretionary trading without proper approval.
According to IIROC documents, Taggart, who worked at an Ancaster, Ont. branch of DWM Securities Inc., used discretionary trading to manage the accounts of three related clients between 2005 and 2008. The clients were a husband and wife and the father of the wife.
The clients were aware that Taggart was making trades on his behalf and spoke with him about possible trades prior to any transaction, according to IIROC. However, Taggart never confirmed the time and price of the trades with the clients. Furthermore, the accounts were never designated as discretionary because Taggart did not receive written authorization from the clients or his firm.
The IIROC hearing panel noted that the trades made by Taggart were suitable for the clients and that “this was not willful, dishonest, egregious conduct.”
Taggart no longer works for DWM Securities. In addition to the fine, Taggart agreed to pay $3,000 in costs.