The Investment Industry Regulatory Organization of Canada has fined a registered representative in Montreal $20,000 in connection with recommendations he made to one of his clients.
Paul Milot admitted to having failed to use due diligence to obtain sufficient knowledge of the features and risks inherent in leveraged exchange traded funds (ETFs) before recommending their purchase to one of his clients and failed to ensure that his trade recommendations were suitable for this client.
The violations occurred between September 2007 and December 2009 while Milot was a registered rep at the Montreal branch of Industrial Alliance Securities Inc.
Under the terms of the settlement agreement, Milot agreed to pay a $20,000 fine and be subject to six-months of close supervision. He must also successfully complete the Conduct and Practices Handbook Course.
Milot also agreed to pay costs in the amount of $2,500.
IIROC formally initiated the investigation into Milot’s conduct in January 2013. He is still within the industry in a registered capacity at the Varennes, Que. sub-branch of Industrial Alliance Securities Inc.