The Investment Dealers Association of Canada announced today that a hearing panel has imposed discipline penalties upon Frank Youden, at all material times branch manager at the Halifax branch of RBC Dominion Securities.

In its liability decision dated Dec. 22, 2005, the panel found that between 2000 and 2002, he Youden failed to: reasonably supervise approved person Hugh Bagnell’s client accounts; adequately address the high turnover ratios in many of Bagnell’s client accounts; adequately review a number of monthly statements that generated more than $1,000 commission per month; and contact Bagnell’s clients himself to confirm the suitability of the trading activity in the face of repeatedly high turnover ratios, high commissions, significant losses and trading activity that was inconsistent with the client objectives on file.

On Feb. 5, 2007, the panel dismissed Youden’s motion to recuse the chair of the panel and to strike the panel.

In assessing the appropriate penalties, the panel considered that Youden was not enriched by the misconduct, had no disciplinary record and cooperated in the IDA’s investigation. However, the panel also noted that Youden’s misconduct was significant and occurred over a prolonged period of time. The panel determined that the penalty must be severe enough to act as a general deterrent in the industry and further the interest of the protection of the public by promoting general adherence to industry rules and standards.

Pursuant to the penalty decision dated Oct. 30, 2007, Youden is fined $70,000, must pay $15,000 in costs and is required to re-write and pass the branch managers qualifying examination by June 30, 2008.

Youden is currently branch manager at the Halifax, branch of RBC Dominion Securities.