The Investment Industry Regulatory Organization of Canada has sanctioned a Toronto registered representative for failing to meet his know your client obligations.

In a settlement agreement, conduct Michael Jeffrey Bereskin admitted that he failed to meet his KYC obligations in handling a particular account. Bereskin has agreed to pay a $10,000 fine.

Specifically, Bereskin violated the KYC rule by opening a trading account for a family trust, then accepting trading instructions from one trustee only and not two as set out in the trust agreement.

In its decision and reasons issued on August 27, an IIROC hearing panel said, “it is clear to this panel that the due diligence regarding ‘know your client’ was inadequate.”

IIROC began its investigation of Bereskin’s conduct on Aug. 20, 2009. The violation occurred when he was a registered representative with the Toronto branch of Blackmont Capital Inc. (now Macquarie Private Wealth Inc.) and First Associates Investments Inc., Blackmont’s predecessor firm.

Bereskin is currently a registered rep with the Toronto (First Canadian Place) branch of BMO Nesbitt Burns Inc.

IE