Former portfolio manager agrees to ban, $60K fine to settle KYC failings

A former portfolio manager agreed to an eight-year ban and a $60,000 penalty for various compliance failings, the British Columbia Securities Commission (BCSC) says.

In a settlement with the BCSC, Todd David MacSween, a former portfolio manager with Fieldhouse Capital Management Inc., agreed to the sanctions after a regulatory compliance review in August 2021 found that 16 of his clients invested approximately $4.3 million in a fund that was unsuitable, as it was too risky for them given their personal and financial circumstances.

MacSween managed an investment fund offered by Fieldhouse and served as a discretionary portfolio manager for retail clients, most of whom invested in his fund.

The BCSC said that, by placing his clients in the fund, “MacSween failed to maintain current and accurate ‘know your client’ information about them, and failed to ensure the fund was suitable for them.”

To resolve the regulator’s concerns, MacSween consented to an order prohibiting him from becoming a registrant or promoter, and from engaging in promotional activities for an issuer, for eight years.

“MacSween made early admissions as to this misconduct, thus avoiding the need for further enforcement proceedings, including a panel hearing,” the regulator said. “He expressed remorse for his conduct, was cooperative with BCSC staff and worked proactively with his clients to address and mitigate harm.”

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.