A hearing panel of the Investment Dealers Association of Canada has fined a B.C. broker $40,000 and prohibited him from acting in any registered capacity for a period of two years for violating investment suitability requirements.
Kyle Kai Kee Wong was a registered representative working at a Richmond, B.C. branch of HSBC Securities (Canada) Inc.
After a hearing on July 28, the panel accepted a settlement between Wong and IDA. Wong admitted that:
- from February 2001 through June 2001, he recommended and processed purchases of Government of Argentina bonds in the accounts of four clients without first using due diligence to ensure that the recommendation was suitable for the clients based on their financial situation, investment knowledge, investment objectives and risk tolerance; and
- on four separate occasions between April 1, 2002 and Oct. 15, 2003, he, without the knowledge or approval of HSBC, personally compensated a client for the default of the interest payments on the client’s Government of Argentina bond by making four separate payments totaling $4,200.
In addition to the fine and the two-year ban, Wong must pay $5,000 in IDA costs.
Wong’s re-approval in any registered capacity is subject to the condition that he successfully complete a one year period of close supervision and that he re-write and pass the Conduct and Practices Handbook Course.
For a complete summary of facts, please see IDA Bulletin 3447