The Investment Industry Regulatory Organization of Canada has fined a former rep with Wellington West Capital Inc. for due diligence and suitability failings.
Following a disciplinary hearing held on March 6, an IIROC hearing panel found Terry Dyck liable for failing to use due diligence to learn the essential facts relating to leveraged exchange-traded funds he recommended to his clients, and failing to ensure they were suitable for his clients.
The violations occurred when Dyck was a registered representative with the Thunder Bay branch of Wellington West.
Specifically, the panel found that from January to December 2009, Dyck failed to use due diligence to learn and remain informed of the essential facts relative to every order accepted, and failed to use due diligence to ensure recommendations were suitable for his clients.
The panel fined Dyck $20,000 and ordered that he not be registered in any capacity with IIROC for seven years from the date of its decision. He is also required to pay costs in the amount of $2,500.
IIROC formally initiated the investigation into Dyck’s conduct in June 2010. He is no longer a registrant with an IIROC-regulated firm.