CIRO penalises two advisors for misconduct, citing improper disclosures and falsified signatures
The Canadian Investment Regulatory Organization (CIRO) has issued sanctions against two advisors following separate settlement hearings held in November.
The hearings addressed allegations of misconduct involving Robert Russell Weir and Gordon Keith Nicholson, each of whom faced disciplinary measures for violations under CIRO’s regulatory framework.
A settlement hearing held on November 7, reviewed allegations that Robert Russell Weir disclosed potentially confidential information to a hedge fund client while employed at the Toronto branch of Stifel Nicolaus Canada Inc.
The information related to block trade transactions for two publicly listed issuers, which may have been used for short sale transactions by the hedge fund without Weir’s knowledge.
On November 25, the hearing panel issued its reasons for decision, confirming the sanctions against Weir. These included:
- A prohibition on approval in any capacity for six months;
- A fine of $75,000;
- A requirement to complete the Conduct and Practices Handbook Course (or equivalent) before receiving future approval; and
- Payment of costs amounting to $5,000.
At the time of the violations in 2020, Weir held the position of Head of Sales and Trading. He has not been registered in the securities industry since December 2021.
In a separate settlement hearing last November 1, CIRO addressed charges against Gordon Keith Nicholson, who was accused of signing the signatures of 13 clients on 19 account forms and submitting them for processing while working at BMO Investments Inc. in Guelph, Ontario.
The forms included various tax-free savings account and registered retirement savings plan documents.
The hearing panel’s reasons for decision, issued on November 24, confirmed the following sanctions:
- A six-month prohibition from conducting securities-related business with any CIRO Dealer Member;
- A fine of $7,500; and
- Payment of $1,000 in costs.
Although Nicholson’s actions contravened CIRO’s Mutual Fund Dealer Rule 2.1.1, the panel noted that there was no financial loss to clients or lack of authorisation for the transactions.
Nicholson has not been registered in the securities industry since his termination in May 2022.
