NEWS -- An investment adviser in Greater Sudbury has been sanctioned for making trades using funds from clients without informing them, a practice known as 'discretionary trades.'
The industry is regulated by a group called Investment Industry Regulatory Organization of Canada (IIROC). On Sept. 28, the IIROC and Sudbury investment advisor Merlyn Black reached a settlement agreement sanctioning Black for trades between June 2017 and May 2018 involving three clients.
As a result, he was fined $10,000, gave back the $3,401 commission he received for the trades and agreed to pay costs in the amount of $1,500.
The investigation began in December 2018, the organization said in a news release.
"The conduct occurred while he was a Registered Representative with the Sudbury branch of CIBC World Markets Inc., an IIROC-regulated firm," the release said. "Mr. Black is currently employed at Wellington-Altus Private Wealth Inc., an IIROC-regulated firm."
All three clients involved are older and are widows. This is the first time Black has been disciplined and he has since "expressed remorse for his conduct," the release said. He will be under enhanced scrutiny for a year.
IIROC investigates possible misconduct by its member firms and/or individual registrants. It can bring disciplinary proceedings which may result in penalties including fines, suspensions, permanent bars, expulsion from membership, or termination of rights and privileges for individuals and firms.
See the full release here.
