The Pacific District Council of the Investment Dealers Association of Canada has imposed penalties on Bruce Stuart. Stuart was a branch manager at the Victoria, office of Midland Walwyn Capital Inc. (now Merrill Lynch Canada Inc.).

As part of a settlement agreement, Stuart acknowledged that he failed to properly supervise the handling of a client’s account.

Ian Scott-Moncrieff was a registered representative in Midland Walwyn Capital Inc.’s Victoria. branch until Oct. 1, 1999. In March 1997, a client became concerned about the trading in his margin account and contacted Stuart. The client requested that a second margin account be opened with a more conservative trading strategy.

Scott-Moncrieff established the second account for the client, but in each of the ensuing nine months, the trading in the account was inconsistent with its stated objectives. Stuart was obliged to review the trading in the account on a monthly basis, and the IDA says Stuart ought to have inquired into numerous individual trades over the relevant period but failed to do so.

Stuart must pay a fine of $7,500 and must re-write and pass the Branch Managers Qualifying Examination. He is also required to pay $2,500 toward the cost of investigation.