The Alberta District Council of the Investment Dealers Association of Canada has fined a former broker with the Calgary office of Research Capital Corp. $25,000 for violating IDA regulations.
On July 27, District Council considered, reviewed and accepted a settlement agreement negotiated between Brian Strong and IDA staff.
Strong admitted that:
- he made an offer to compensate a client for account losses, and advanced a personal loan to two clients in circumstances of undermargin and/or trade restricted accounts and losses; and
- he failed to ensure that trade recommendations and use of margin were appropriate for two client accounts and in keeping with the clients’ true and/or stated investment objectives.
Besides the fine, Strong must re-write and pass the Canadian Securities Course and the Conduct and Practices Handbook examination prior to approval by the Association; and upon resuming employment as a registered representative with any IDA firm, he be subject to a three-month period of supervision. In addition, Strong must $4,500 towards the Association’s costs.
Strong has not been employed in the industry since October 2003.
For a complete summary of facts, please see IDA Bulletin 3338.