By The Book:

(August 22, 2008) The Investment Industry Regulatory Organization of Canada has scheduled a hearing to determine the penalty it will impose upon André Bergeron, a former registered representative at Desjardins Securities.

Bergeron was found to have failed in his duty to protect the public by opening 47 new accounts with his firm for a third party he had not even spoken to, let alone met.

The activity within these accounts was also suspicious, according to investigators, which should have tipped Bergeron off that something was amiss. The accounts invested primarily in private placements.

The IDA initiated an investigation into Bergeron’s conduct on October 13, 2005.

MFDA sanctions Sterling Mutuals

(August 22, 2008) The Mutual Funds Dealers Association (MFDA) has approved a settlement agreement with Sterling Mutuals Inc., ordering the company to pay a fine of $50,000, plus $5,000 in costs.

The firm must also hire an independent monitor to resolve outstanding compliance deficiencies.

The penalties stem from the MFDA finding that the firm failed to establish a two-tier compliance structure to supervise client account activity.

In June, the MFDA imposed a lifetime ban and a fine of $250,000 on Brian Somerset Campbell, a former approved person at Sterling.

Campbell was found to have breached a number of MFDA rules, including engaging in discretionary trading, collecting portfolio management fees from clients instead of from his firm, and possessing 68 pre-signed blank forms. He was also sanctioned for not co-operating with MFDA staff during their investigation.

(08/22/08)

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.