Ex-CIBC World Markets employee generated more than $50,000 in commissions despite two clients’ respective accounts losing almost 60% in value
A portfolio manager has been fined $25,000 and suspended for five months by IIROC after excessive and unsuitable trading that resulted in significant losses for two clients.
Dunn will also have to undergo six months of close supervision, rewrite the Conduct and Practices Handbook exam and pay costs of $5,000.
The violations took place while the respondent was employed with CIBC World Markets. He is currently a registered rep with PI Financial Corp.
The incidents pertain to two different clients and involved Dunn engaging in excessive trading in their accounts that was inconsistent with good business practices, and not suitable for them.
An IIRCO hearing concluded that “this resulted in the respondent receiving significant new issue commissions and trading commissions”.
The first client was 49 years old and working in a physio therapist’s office. During the relevant period, the value of their LIRA account decreased from $56,207 to $24,550 (56%), while Dunn generated approximately $15,280 in gross commissions and fees.
The second client was 46 years old and working as a self-employed aesthetician. During the relevant period the value of their investment account decreased from $61,913 to $26,109 (58%), while Dunn generated approximately $39,766 in commissions and fees.
The respondent’s current violations occurred while he and his former branch manager were being investigated for similar misconduct, and then prosecuted for that misconduct, resulting in a $65,000 fine for Dunn.
