The former branch manager was also fined $90K by CIRO
A former dealing representative from Ontario has been given a permanent ban and fined $90,000 for conflict of interest which he then covered up from his employer and the regulator.
A Canadian Investment Regulatory Organization’s hearing panel heard that Clive Wilkins, a former dealing rep and branch manager with CIRO member PFSL Investments Canada, had borrowed clients’ money totalling $256,000, in contravention of his employer’s rules. This was used to pay personal expenses including outstanding tax arrears. The borrowing took place over a 21 year period and included some loans that were not repaid.
Wilkins borrowed from clients before and after the Ontario Securities Commission imposed terms and conditions on his registration placing him under close supervision due to his tax arrears, and he borrowed some amounts after the heightened supervision was required.
Borrowing from clients gave rise to conflicts or potential conflicts of interest that Wilkins failed to disclose to PFSL or otherwise ensure were addressed by the exercise of responsible business judgment influenced only by the best interests of the clients.
When PFSL discovered the borrowing and reported it to the MFDA in 2020, Wilkins denied the claims. In subsequent communications, the notice of a hearing panel stated that he had made false or misleading statements to PFSL and the MFDA during the course of investigations into his conduct and had failed to cooperate with an investigation into his conduct by staff of CIRO.
Wilkins was given a permanent prohibition from conducting securities related business while in the employ of or associated with any Dealer Member of CIRO, a fine of $90,000, and is required to pay $10,000 costs.
