A hearing panel of the Investment Dealers Association of Canada fined a branch manager of Credential Securities Inc. $50,000 for failing to adequately supervise a broker.

In a June 14 decision, following a hearing on April 18, the panel found that Spencer Graham, a co-branch manager with the Regina office of Credential, failed to adequately supervise broker Richard Gareau to ensure that Gareau performed sufficient due diligence with respect to a security.

The panel found that Graham further failed to take steps to remain sufficiently informed of the essential facts with respect to the security. These actions led to unsuitable concentrations of the security in four client accounts.

The panel dismissed the other allegation against Graham, that he permitted Gareau to update a client account with a risk tolerance that was unsuitable for the client.

In addition to the $50,000 fine, Graham must successfully rewrite the CSC, CPH, and PDO examinations as a condition of continued approval as branch manager.

He must also pay $15,000 in costs, which, with the fine, must be paid by September 30.