(September 11 – 16:30 ET) – The British Columbia Securities Commission says the branch manager of Canadian Global Investment Corp.’s Surrey office has agreed to pay the BCSC $15,000 after admitting he failed to properly supervise new client accounts.
The BCSC says Wilson agreed to pay the penalty plus $5,000 in investigative costs. As part of the penalty Wilson is prohibited from becoming or acting as a branch manager or compliance officer for five years, or until he successfully completes three courses from the Canadian Securities Institute. Wilson is also prohibited from acting as a company director until he successfully completes two other courses for directors of public firms.
Wilson is registered as a mutual fund salesperson and has worked for Canadian Global Investment Corp. (CGIC) since 1997. For a six-month period from May to November 1999, he was assigned as a CGIC compliance officer and branch manager of the company’s Surrey office.
During this period, some CGIC employees solicited clients to invest in CGIC securities and other exempt market securities that were risky, illiquid and speculative. Many of these investments were unsuitable for the clients. These activities and the CGIC employees involved will be the subject of a BCSC hearing beginning September 11.
In his settlement, Wilson admits he did not ensure that new client accounts were approved and he did not properly supervise the transactions of CGIC and its employees. As compliance officer, he did not review the account opening documentation nor did he review the suitability of the investments for the CGIC clients.
-IE Staff