A hearing panel of the Investment Dealers Association of Canada suspended has suspended a former Edward Jones broker and fined him $30,000 for failing to ensure his recommendations were suitable for his client.
David Yanor was an approved person with a Vancouver sub-branch office of Edward Jones.
In its written decision dated Oct. 28, 2005, the panel found that Yanor:
- between November 1999 and December 1999, failed to use due diligence to ensure that his recommendations were suitable for his client, when he recommended that the client sell mutual funds from her accounts, which resulted in the client incurring deferred sales charges;
- between October 1999 and April 2002, recommended that the same client purchase securities for her accounts, which caused the total amount of aggressive securities in those accounts to unreasonably exceed her investment objectives for those accounts; which recommendations were unsuitable; and
- between April 2000 and April 2002, recommended that the same client use her margin facility to purchase securities for her account, which strategy was unsuitable for her.
For his misconduct, Yanor was assessed a one-year suspension and a $30,000 fine. As a condition of re-approval, he must successfully complete the Canadian Securities Course, the Conduct and Practices Handbook examination, and be subject to strict supervision for a period of one year. In addition, Yanor must pay $15,000 in costs.
He had no previous disciplinary history and he is not currently employed as an IDA registrant.
Edward Jones made restitution to the client.
For a complete summary of facts, please see IDA Bulletin 3478.