Enforcement Notice - IN THE MATTER OF David Claude Bugden - Settlement Accepted
HALIFAX, April 28, 2017 /CNW/ - On April 18, 2017, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and David Claude Bugden.
Mr. Bugden admitted that he made recommendations to a client that were unsuitable and inconsistent with good business practice, and signed account documentation prepared by his partner without verifying whether the recorded risk tolerance and investment objectives were suitable for the clients.
Specifically, Mr. Bugden admitted to the following violations:
| (a) |
Between January 2012 and December 2014, Mr. Bugden made recommendations and purchases of securities that were not suitable and were not within the bounds of good business practice, contrary to IIROC Rules 1300.1(o) and (r); and |
| (b) |
In January 2010, May 2011 and June 2012, Mr. Bugden approved account documentation without using due diligence to learn the essential facts relative to two clients, contrary to IIROC Dealer Member Rule 1300.1(a). |
Pursuant to the Settlement Agreement, Mr. Bugden agreed to the following penalties:
| (a) |
For count (a), a fine of $25,000, inclusive of disgorgement of commissions obtained in the amount of approximately $12,000; |
| (b) |
For count (b), a fine of $15,000; |
| (c) |
Close supervision for one year; and |
| (d) |
Successful re-write of the Conduct and Practices Handbook examination within six months. |
Mr. Bugden also agreed to pay costs in the amount of $5,000.
The Settlement Agreement is available at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=7A812AD97E7A40D98E6EC53E48869BB3&Language=en
The Hearing Panel's decision will be made available at www.iiroc.ca.
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. Bugden's conduct in December 2015. The conduct occurred while he was a Registered Representative with the New Glasgow branch of Scotia Capital Inc., an IIROC-regulated firm. Mr. Bugden continues to be registered with Scotia Capital Inc.
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: Elsa Renzella, Vice-President, Enforcement, 416 943-5877, [email protected]; Media Contact: Karen Archer, Manager, Media Relations, 416 865-3046, [email protected]
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