Investment Executive | IIROC fines Ontario Rep $35,000
RBC DS rep failed to use proper due diligence in recommending investment product to client.
The Investment Industry Regulatory Organization of Canada (IIROC) has fined Robert Jay Kilgannon, a registered representative in Oshawa, Ont., $35,000 for failing to do proper due diligence before recommending a product to a client.
According to IIROC, between February 2007 and January 2009, Kilgannon did not adequately inform himself about the facts of Nortel Cumulative Redeemable Class A Preferred Shares Series 5. Despite the lack of due diligence, he recommended the product to a client. Furthermore, IIROC found that Kilgannon did make sure that the Nortel investment was suitable for the client based on her finances, investment knowledge and objectives and risk tolerance.
At the time of the incident, Kilgannon was employed with RBC Dominion Securities Inc. He continues to be registered with the firm.
In addition to the fine, Kilgannon must be closely supervised for four months and has 12 months in which to re-write and successfully complete the Conduct and Practices Handbook examination. As well, Kilgannon must pay $5,000 in costs.