A hearing panel of the Investment Dealers Association of Canada has fined a Saskatchewan broker $20,000 for failing to learn the details of a security before recommending its purchase to as many as 14 clients.

Richard Reynaud Gareau was a registered representative at the Prince Albert, Sask., sub-branch office of Credential Securities Inc.

In a written decision released on July 29, the hearing panel found Gareau failed to use due diligence to learn the essential facts relative to orders accepted, in that he did not adequately inform himself as to the nature or details of a security (BCI Debenture) before recommending its purchase to as many as 14 clients.

The panel further found that Gareau failed to use due diligence to ensure that the recommendations made for the accounts of 14 clients were appropriate for the clients and in keeping with their investment objectives.

The panel dismissed an allegation that Gareau failed to disclose features of BCI Debenture to as many as fourteen clients,.

In addition to the fine, Gareau must pay $5,000 in costs. He has not been employed in the securities industry since July 2.