The Investment Industry Regulatory Organization of Canada (IIROC) has fined and permanently banned Brian Malley for failing in his know-your-client and due diligence responsibilities.
Malley was charged with the first-degree murder of one of his clients in 2012. (See Investment Executive, Ex Assante advisor violated IIROC rules, April 1, 2014.)
Malley was fined $300,000 by an IIROC hearing panel for three violations, which occurred between 2005 and 2012, when he was an advisor with Red Deer, Alta. branch of Assante Capital Management Inc.
According to the panel’s decision, Malley: failed to use due diligence to stay informed regarding the circumstances of 12 clients; made unsuitable investment recommendations to 10 clients between 2008 and 2012; and made unauthorized discretionary trades in the accounts of seven clients between 2008 and 2012.
Malley’s wife, Christine Malley, was the branch manager of the Assante sub-branch where they both worked. She was also permanently banned and fined $250,000 by IIROC for failing to proper supervise the accounts of 12 clients between 2005 and 2012.
In addition to the fines, Brian and Christine Malley must pay $35,000 and $15,000 in costs, respectively.
In its decision, the IIROC panel noted that both Malleys failed to cooperate with IIROC’s investigation.
Neither Malley is currently employed by an IIROC-regulated firm.