A panel of the Alberta Securities Commission has ruled that a former mutual fund salesman Marc Lamoureux failed to fulfill the “know your client” and “suitability” obligations. Marc Lamoureux, of Grande Prairie, Alta. was the subject of an ASC hearing earlier this year, and a decision has now been released.

The panel also found that Lamoureux failed to explain material risk factors to two of his former clients. In its decision, the panel found that Lamoureux’s actions demonstrated a “profound lack of awareness of registrant’s obligations.”

The panel heard from 11 of Lamoureux’s former clients who had bought limited partnerships in Maui Court Partnership and Maui Lani Partnership – interests in condominium projects in Hawaii. The partnerships later collapsed and most of the investments were lost.

ASC staff alleged that Lamoureux sold these risky and speculative investments to several of his unsophisticated clients and that those investments were unsuitable for those clients.

“It should now be clear to registrants that it is their responsibility to know their clients, especially the client’s risk tolerance and investment objectives,” said Wayne Alford, ASC Director of Enforcement. “As registered salespersons, they are required to ensure that the investment recommendations they make are suitable for their clients. We expect the dealers and their salespersons to fulfill these obligations.”

The panel is expected to convene at a later date to hear further submissions regarding appropriate sanctions.