(November 19- 14:10 ET) – The
Saskatchewan District Council of
the Investment Dealers Association
of Canada has imposed discipline
penalties on Darryl Yasinowski,
formerly a registered
representative in the Regina,
Saskatchewan branch office of
Richardson Greenshields Canada
Limited.
In February 1997 Yasinowski
received a call from an existing
client who wanted to invest in more
aggressive securities to improve
the return in an RRSP account. The
investment objectives for the
account had been previously
recorded as “growth”, and the
risk factors as “good quality”
investments. During the
conversation with the client
Yasinowski recommended a security
that was speculative in nature and
the client authorised its
purchase. Yasinowski did not update
the account documentation to
reflect the client’s desire to
invest in riskier type securities.
Almost immediately following
the purchase the price of the
security began to decline. The
client was advised on three
occasions by both Yasinowski and
his branch manager to sell the
security, however the client
decided to hold the security
despite this advice. Several
months after the purchase the
security was de-listed from the
Toronto Stock Exchange which
resulted in the client losing
the entire investment of
$48,933.84. The failure of Mr.
Yasinowski to update the client’s
recorded investment objectives
to reflect the client’s interest
in more speculative investments
was a violation of the duty
imposed on a registered
representative pursuant to
Regulation 1300.1(a).
The discipline penalty assessed
against Mr. Yasinowski as amended
by the District Council for
violating Regulation 1300.1(a) is
a fine in the amount of $1,500.00,
and a condition of approval that
he rewrite the Conduct and
Practices Handbook Examination.
In addition, Mr. Yasinowski is
required to pay $1,500.00 towards
the Association’s costs of
investigation of this matter.
Mr. Yasinowski is not eligible
for approval until such
time as the fine and costs are
paid.
-IE Staff
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