The sanctions follow findings of client fund misuse and misleading compliance reports
The Canadian Investment Regulatory Organization (CIRO) permanently prohibited Andrew Kazina from conducting securities-related business with any CIRO member registered as a mutual fund dealer.
Following hearings on March 20 and November 13, CIRO also fined Kazina $342,500 and ordered him to pay $30,000 in costs under the Mutual Fund Dealer Rules.
The sanctions followed an earlier liability decision issued on November 15, 2023, which found that Kazina had committed multiple violations. These included engaging in outside business activities without disclosure or approval from his member firm.
He operated businesses offering tax and financial planning services to individuals, as well as consulting services such as marketing, franchising, and business advisory support to other businesses.
The hearing panel also concluded that Kazina recommended and accepted approximately $257,500 for investments in a business he operated, receiving funds from at least eight clients and two non-clients.
These activities were not conducted through the accounts or facilities of his member firm, violating established rules.
Furthermore, Kazina was found to have solicited approximately $232,500 from at least eight clients, commingling the funds with personal savings in accounts he held personally or jointly with his wife.
This created a conflict of interest that he failed to disclose to the member firm or address responsibly.
The panel also determined that he provided false or misleading information to his member firm by inaccurately completing annual compliance questionnaires.
The violations occurred while Kazina conducted business in Winnipeg, Manitoba. The investigation revealed that funds solicited from clients and non-clients were used to operate his businesses, and the commingled funds were deposited into personal accounts.
Evidence presented in the hearings included agreements signed by Kazina with clients, financial statements showing the funds’ usage, and testimony confirming his activities.
The panel found that Kazina’s conduct was contrary to CIRO’s rules, which mandate disclosure of all outside business activities and prohibit conflicts of interest and unapproved securities-related business.
Kazina, who is no longer registered in the securities industry, initially became subject to regulatory oversight in 2002 when his firm joined the Mutual Fund Dealers Association of Canada (MFDA).
That organisation later consolidated with the Investment Industry Regulatory Organization of Canada (IIROC) on January 1, 2023, forming CIRO.
The findings against Kazina highlighted his failure to adhere to longstanding policies requiring members to disclose outside business activities and avoid engaging in unapproved financial dealings with clients.
