Medicine Hat-based financial advisor fined $70,000 for making unsuitable recommendations to a small business owner
Apr 04, 2017, 14:10 ET
CALGARY, April 4, 2017 /CNW/ - On March 21, 2017, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and Blaine Albert Kunz.
Mr. Kunz made unsuitable recommendations to a client when he employed an investment strategy that involved a high degree of risk, which was contrary to the client's stated investment objectives and risk tolerance parameters. As a result of Mr. Kunz's investment recommendations, his client experienced a net loss of $463,587.
Mr. Kunz admitted that he failed to use due diligence to learn and remain informed of the essential facts relative to his client and failed to use due diligence to ensure that recommendations were suitable for his client.
Specifically, Mr. Kunz admitted to the following violation:
(a) Between approximately December, 2010 and April, 2013, Mr. Kunz failed to use due diligence to learn and remain informed of the essential facts relative to his client, contrary to Dealer Member Rule 1300.1 (a); and
(b) Between approximately December, 2010 and April, 2013, Mr. Kunz failed to used due diligence to ensure that recommendations were suitable for his client, contrary to Dealer Member Rule 1300.1 (q).
Pursuant to the Settlement Agreement, Mr. Kunz agreed to the following penalty:
(a) A fine in the amount of $70,000.
Mr. Kunz also agreed to pay costs in the amount of $5,000.
The Settlement Agreement is available at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=34B3DFEA81F04F2A9BA1063C4D0ADE98&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. Kunz's conduct in August 2014. The violations occurred while he was a Registered Representative with the Medicine Hat, Alberta branch of CIBC World Markets Inc., an IIROC-regulated firm. Mr. Kunz is currently a Registered Representative at the Medicine Hat branch of CIBC World Markets Inc., an IIROC- regulated firm.
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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, [email protected]; Media Contact: Karen Archer, Manager, Media Relations, 416-865-3046, [email protected]
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