A hearing panel of the Investment Industry Regulatory Organization of Canada has found that a Saskatchewan broker made unsuitable recommendations for clients, among other rule violation.
The panel will meet at a future date to determine the appropriate penalty.
Specifically, the panel found that Kenneth Gareau:
- recorded inaccurate income, risk tolerance, and investment knowledge for two separate client families on their client account forms;
- failed to ensure recommendations he made for two client families to purchase and hold securities were suitable for those clients; and
- sold an income-producing bond against the express wishes of a client.
“They are retired and can be described as seniors,” the panel said about the clients. “It is our conclusion that there is no doubt that the recommendations of Mr. Gareau … were unsuitable given the totality of [the clients’] personal circumstances, including age, risk tolerance, investment knowledge and general sophistication with respect to investments and the market.”
The violations occurred between May 2006 and October 2008, when Gareau was a registered representative with the Regina sub-branch of Dundee Securities Corp. Gareau is still registered in the same capacity at the same firm.
IIROC began the investigation into his conduct in March 2009.