A former mutual fund rep has been fined and banned for violating securities rules, by taking money from several clients to invest in his outside business ventures.<\/p>\n
A hearing panel of the Canadian Investment Regulatory Organization ordered that Andrew Kazina, formerly with Investors Group Inc. in Winnipeg, be permanently banned from the industry and fined $342,500. It found that he violated several of the self-regulatory organization’s rules. He was also ordered to pay $30,000 in costs.<\/p>\n
Back in November 2023, a hearing panel found that Kazina engaged in undisclosed outside business activity by operating an unregistered tax and financial planning business, and a marketing, franchising and consulting business, alongside his work as a fund rep.<\/p>\n
It also found that he engaged in unapproved securities-related business \u2014 and personal financial dealings with clients \u2014 by raising over $250,000 from at least eight clients and two other investors in his outside businesses, and promising returns on those investments.<\/p>\n
Those arrangements amounted to selling securities as they meet the definition of investment contracts, the panel said, “… by raising monies from clients and non-clients to invest in his personal business, [Kazina] was clearly engaging in the sale of a security.”<\/p>\n
It also found that he accepted these investments from both clients and non-clients, “which he then commingled with his own personal savings.”<\/p>\n
These dealings amounted to undisclosed conflicts of interest, the panel said.<\/p>\n
It also found that he provided false or misleading information to his dealer in annual compliance questionnaires.<\/p>\n","protected":false},"excerpt":{"rendered":"
Rep had clients invest in, failed to disclose, his side hustles<\/p>\n","protected":false},"author":147314,"featured_media":419872,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2324,2312],"tags":[2443,2355,2515,3547,107291,2572,2394],"yst_prominent_words":[6039,27994,27427,24294,24291,16498,14031,12312,11969,8443,8441,8353,6370,14,6031,4028,2141,2113,1830],"acf":[],"_links":{"self":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/497619"}],"collection":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/users\/147314"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/comments?post=497619"}],"version-history":[{"count":4,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/497619\/revisions"}],"predecessor-version":[{"id":497644,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/497619\/revisions\/497644"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/media\/419872"}],"wp:attachment":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/media?parent=497619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/categories?post=497619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/tags?post=497619"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/yst_prominent_words?post=497619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}