An options trader in the Hamilton office of CIBC World Markets Inc. has been fined $50,000 by the Investment Dealers Association of Canada for failing to make appropriate investment recommendations for clients.

The IDA says Frederick Kenneth Walsh must also pay disgorgement of commissions of slightly more than $2,000 and must be subject to strict supervision for one year. He is also required to pay $15,000 for the association’s costs.

Walsh accepted a settlement agreement July 29 after he admitted “that he failed to use due diligence to ensure that recommendations made for client accounts were appropriate for the clients and in keeping with their investment objectives,” the IDA said in a statement. “Mr. Walsh also admitted that he engaged in discretionary trading and effected a trade in a client account without proper authorization.”

Walsh had been disciplined before by the IDA, in August 1996. He is currently a vice president and associate portfolio manager options at a Hamilton office of CIBC World Markets Inc.