The Pacific District Council of the Investment Dealers Association of Canada has imposed discipline penalties on a branch manager of HSBC Securities (Canada) Inc. for failing to provide proper supervision.

Under the settlement agreement reached with IDA staff, Glenn Fung, who had supervisory responsibilities for HSBC Securities’s sub-branch office in Kelowna., admitted that he permitted Rene Girard, a registered rep at the Kelowna sub-branch, to open and be responsible for the account of a client who was a resident of Saskatchewan. Girard was not registered in any capacity in Saskatchewan.

Fung also admitted that he failed to properly supervise Girard’s trading activity in a client account to ensure the recommendations made were appropriate to the client’s investment objectives.

Fung must pay a $25,000 fine and successfully rewrite the Branch Managers Course examination as conditions of reapproval in any registered capacity. In addition, Fung must pay $4,500 in IDA costs.

The IDA notes that Fung has not previously been the subject of professional discipline by a regulatory body of the securities industry. He resigned in good standing from HSBC Securities on March 5, 2004 and transferred to HSBC Brokerage (USA) Inc. in New York. He is therefore no longer registered in B.C.