The Financial Services Commission of Ontario (FSCO) has denied a licence to a prospective insurance agent who didn’t disclose his previous disciplinary history in the investment industry.
FSCO released its decision to deny a life insurance agent licence to Michael Leigh, indicating that it found he is not suitable for licensing.
According to the decision, Leigh applied for a licence as a life insurance agent in August 2008. It says that, in his application, he stated that no complaint had been made against him to a regulatory body, and that he had not been subject to investigation or discipline by a regulatory body. But, in fact, it says that he had already met with investigators from the Investment Dealers Association (IDA), concerning three complaints that had been made against him to the IDA.
Ultimately, in late 2009, Leigh was sanctioned by a hearing panel of IDA successor, the Investment Industry Regulatory Organization of Canada (IIROC), amid allegations of unauthorized and unsuitable trading. He was banned for 10 years, and assessed $100,000 in penalties and costs.
FSCO found that he is unsuitable for licensing, based on “his unauthorized activity in client accounts and his failure to disclose the investigation by the Investment Dealers Association.”
It says that Leigh did not seek an opportunity to be heard in the case, and, without testimony from him, it said it’s “unable to consider any explanations for his behaviour or mitigating circumstances.” Ultimately, it denied the application.