Unsuitable leveraged ETFs cost rep $22,500

Following a disciplinary hearing held on March 6, 2012, an IIROC hearing panel found Terry Norman Dyck liable for failing to ensure that his investment recommendations were suitable for his clients.

Dyck did not learn the essential facts about leveraged ETFs that he recommended to his clients and, in effect, put them at risk.

Specifically, the panel found that Dyck committed the following violations:

From about January to December 2009, Dyck, while a registered representative:

(i) failed to use due diligence to learn and remain informed of the essential facts relative to every order accepted, contrary to IIROC Dealer Member Rule 1300.1(a); and

(ii) failed to use due diligence to ensure recommendations were suitable for his clients, contrary to IIROC Dealer Member Rule 1300.1(q).

The panel imposed the following penalty on Dyck:

(a) a $20,000 fine; and

(b) that he not be registered in any capacity with IIROC for seven years from the date of this decision.

Dyck is also required to pay costs in the amount of $2,500.

Read the penalty summary here.

IIROC formally initiated the investigation into Dyck’s conduct in June 2010. The violations occurred when he was a registered representative with the Thunder Bay branch of Wellington West Capital Inc., an IIROC-regulated firm. Dyck is no longer a registrant with an IIROC-regulated firm.

Staff

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