Enforcement Notice - Decision - IIROC Fines Former Vancouver-Based Adviser for Unsuitable Recommendations to Older Couple

VANCOUVER, May 2, 2017 /CNW/ - On March 23, 2017 a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and Daryl Rebeck.

Mr. Rebeck made unsuitable recommendations to a couple in their sixties when he employed an investment strategy that was inconsistent with the clients' objectives, given their age, employment status, investment knowledge, and financial circumstances. As a result of Mr. Rebeck's investment recommendations, the couple suffered a significant financial loss.

Mr. Rebeck admitted that he made unsuitable recommendations for two clients.

Specifically, Mr. Rebeck admitted to the following violations:

(a)

Between 2010 and 2013, Rebeck failed to ensure that the recommendations that he made for the account of the client were suitable, contrary to Dealer Member Rule 1300.1(q).



(b)

Between 2010 and 2013, Rebeck failed to ensure that the recommendations that he made for the accounts of the clients were suitable for them, contrary to Dealer Member Rule 1300.1(q).

Under the Settlement Agreement, Mr. Rebeck agreed to the following penalties:

(a)

a fine of $45,000;



(b)

a prohibition from applying for registration in any capacity with IIROC for a period of six months;



(c)

a requirement that he successfully complete the Conduct and Practices Handbook course prior to being eligible for approval; and



(d)

upon re-approval a 12-month period of close supervision.

Mr. Rebeck also agreed to pay costs in the amount of $5,000.

The Settlement Agreement is available at: http://www.iiroc.ca/Documents/2017/5d5193bd-f280-4b55-acb0-44b9ce212218_en.pdf.                                                       

Documents related to ongoing IIROC enforcement proceedings – including Reasons and Decisions of Hearing Panels – are posted on the IIROC website as they become available. Click here to search and access all IIROC enforcement documents.

IIROC formally initiated the investigation into Mr. Rebeck's conduct in August 2015.  The conduct occurred while Mr. Rebeck was at Canaccord Genuity Corp. in Vancouver.  Mr. Rebeck is no longer a registrant with an IIROC-regulated firm.

IIROC is the national self-regulatory organization which oversees all investment dealers and their trading activity in Canada's debt and equity markets. IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while supporting healthy Canadian capital markets. IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of dealer firms and their registered employees and through setting and enforcing market integrity rules regarding trading activity on Canadian equity marketplaces.

IIROC investigates possible misconduct by its member firms and/or individual registrants. It can bring disciplinary proceedings which may result in penalties including fines, suspensions, permanent bars, expulsion from membership, or termination of rights and privileges for individuals and firms.

All information about disciplinary proceedings relating to current and former member firms is available in the Enforcement section of the IIROC website. Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by IIROC-regulated firms is available free of charge through the IIROC AdvisorReport service. Information on how to make investment dealer, advisor or marketplace-related complaints is available by calling 1 877 442-4322.

SOURCE Investment Industry Regulatory Organization of Canada (IIROC) - General News

For further information: Enforcement Contact: Warren Funt, Vice-President, Western Canada, 604 331-4750, wfunt@iiroc.ca; Media Contact: Karen Archer, Manager, Media Relations, 416 865-3046, karcher@iiroc.ca

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