In an unusual case, an advisor allegedly did the unthinkable to a client’s account and faces possible sanctions as a result
IIROC announced late last week that a former Montreal advisor will go before an IIROC Hearing Panel for allegedly taking funds from a client’s account.
The big problem in this case? The client had been dead for four months, alleges IIROC, and worse still, the client was the advisor’s spouse.
The advisor is scheduled to appear before an IIROC Hearing Panel October 22 to set a disciplinary hearing where allegations about this case will be heard.
Interestingly, the advisor was an IIROC registrant for 36 years. It’s another example of an advisor seemingly going off the rails after years of keeping their nose clean.
There are three specific allegations in this case.
The advisor allegedly and on two different days ordered the liquidation of holdings from the client’s TFSA account with the proceeds ($15,973) to be transferred to the client’s bank account. The advisor’s actions were problematic in that the client’s account wasn’t discretionary in nature; she should have gotten authorization for the liquidation contrary to IIROC Rule 29.1, Rule 1300.4 and Rule 1300.5, alleges IIROC.
While unauthorized trading is always a bad thing the biggest problem here was that the client died in October 2013 but the advisor allegedly failed to inform her employer of this material change. She also failed to update the client’s account to reflect that it was now an estate account contrary to IIROC Rule 29.1.
Leaving the worst of the allegations for last the former advisor took a signed blank cheque of the client’s for the sole purpose of appropriating the $16,000, also contrary to Rule 29.1.
The investigation into these allegations officially began in June 2014.
The big problem in this case? The client had been dead for four months, alleges IIROC, and worse still, the client was the advisor’s spouse.
The advisor is scheduled to appear before an IIROC Hearing Panel October 22 to set a disciplinary hearing where allegations about this case will be heard.
Interestingly, the advisor was an IIROC registrant for 36 years. It’s another example of an advisor seemingly going off the rails after years of keeping their nose clean.
There are three specific allegations in this case.
The advisor allegedly and on two different days ordered the liquidation of holdings from the client’s TFSA account with the proceeds ($15,973) to be transferred to the client’s bank account. The advisor’s actions were problematic in that the client’s account wasn’t discretionary in nature; she should have gotten authorization for the liquidation contrary to IIROC Rule 29.1, Rule 1300.4 and Rule 1300.5, alleges IIROC.
While unauthorized trading is always a bad thing the biggest problem here was that the client died in October 2013 but the advisor allegedly failed to inform her employer of this material change. She also failed to update the client’s account to reflect that it was now an estate account contrary to IIROC Rule 29.1.
Leaving the worst of the allegations for last the former advisor took a signed blank cheque of the client’s for the sole purpose of appropriating the $16,000, also contrary to Rule 29.1.
The investigation into these allegations officially began in June 2014.
