The Pacific District Council of the Investment Dealers Association of Canada has fined a Vancouver broker $105,000 and suspended him for three years for amending the investment objectives of a client account without approval and executing unauthorized trades.

James Wooster was a registered representative with the Vancouver offices of Nesbitt Burns Corp., which became BMO Nesbitt Burns Inc., and subsequently with Canaccord Capital Corp..

In its decision dated May 5, following a disciplinary hearing last December, the District Council found that Wooster contravened IDA by-laws in that he:

  • on two occasions, without the knowledge or consent of a client, amended her investment objectives for her cash and RRSP accounts, as set out in their New Client Account Forms;
  • effected a total of 10 unauthorized trades in the RRSP and margin accounts of a client;
  • misrepresented to a client, the status of certain funds deposited into his account; and
  • made misrepresentations to his employer concerning the margin account of a client.

The District Council also found that Wooster:

  • failed to use due diligence to ensure that he learned the essential facts concerning a client;
  • completed a single New Client Account Form for a client to update both her cash account and RRSP account New Client Account Forms);
  • recommended that his client purchase securities for her cash, RRSP and margin accounts which unreasonably exceeded her actual investments objectives for these accounts; and
  • recommended to a client the purchase of certain specific securities in her accounts that were not suitable for purchase.

The District Council fined Wooster a total of $105,000, and prohibited him from re-approval by the IDA for a period of three years. He must also disgorge commissions in the amount of $2,236.50.

In addition, Wooster must pay $40,000 towards the Association’s costs in investigating this matter.

For a complete summary of facts, please see IDA Bulletin 3311.