The Ontario Securities Commission has denied registration to a prospective mutual fund salesperson, citing his past record selling insurance products.

Adam Nikolaus was registered from February 15, 1994 to November 28, 2001 with Quadras Investment Services Inc. He resigned for cause from Quadras on November 28, 2001 following a meeting concerning questionable signatures on an insurance policy application. In January, the OSSC told him that it proposed to attach terms and conditions to his registration as a salesperson with Credential Asset Management Inc. due to his previous employment activities as a salesperson with Quadras.

Nikolaus told the OSC that he would like the opportunity to be heard and that he had not yet been “advised of the particulars regarding the activities that resulted in this action”.

In July, London Life Insurance Co. (a related company) told the OSC of over 20 complaints concerning Nikolaus. So in October, OSC staff advised Nikolaus that it was recommending that his application for registration be denied. It noted that it had concerns about his past conduct at Quadras/London Life. It noted that a total of 24 client complaints were received after his resignation; including, but limited to, allegations of churning, misrepresentation and fraud. “It is staff’s opinion that these facts establish that you lack the competence, integrity and trustworthiness required of a securities industry professional, and are therefore unsuitable for registration,” it said.

In a letter, Nikolaus defended his record, noting, “I have never intentionally misled or misrepresented facts to my clients.”

Nevertheless, the OSC director, in this case, compliance manager, Marrianne Bridge, decided to deny the registration, saying, “In my opinion, it would be inappropriate to register the applicant as a mutual fund salesperson with Credential while serious questions regarding his past conduct at Quadras remain outstanding.” She noted that similar criteria apply to determining suitability for registration even though the past conduct involved insurance products, not mutual funds.