The Ontario District Council of the Investment Dealers Association of Canada has fined an RBC Dominion Securities, Inc. registered rep $30,000 for excessively trading in his client’s margin account for the purpose of earning commissions.

On May 13, the Ontario District Council considered, reviewed and accepted a settlement agreement with Paul Mark Herd. Herd admitted he engaged in needless trades to inflate his commissions.

He also admitted that he was less than forthright with the management of RBC DS in respect to the same client and that he exercised discretion in effecting trades in his client’s margin account, for which the client had not given his written authorization and which had not been accepted as a discretionary account by RBC DS.

Besides the fine, Herb must pay $50,000 in disgorgement of commissions and $5,000 towards the costs of the IDA’s investigation. He must also rewrite and pass the Conduct and Practices Handbook exam within six months.

For a complete summary of facts, please see IDA Bulletin No. 3157 at www.ida.ca.