Risky referrals resulted in losses of $ 116,000 for senior clients


    Harris managed six accounts for the client, including one margin, RRSP, cash, TFSA and two RESP accounts. At all times, none of these accounts were discretionary or managed, and he needed your prior approval before doing business.

    Since Harris changed company in 2012, he had customers sign new customer account forms for all six accounts. However, for the period from December 2012 to July 2017, IIROC said that the investment objectives stated in client accounts were too aggressive for the client due to their limited knowledge and reliance on withdrawals for monthly income.

    “Harris failed to learn and stay informed about the material facts regarding LP because the investment objectives stated in their accounts were inconsistent with their actual financial situation, investment knowledge, investment objectives and risk tolerance,” said IIROC .

    Harris had an aggressive investment strategy in the accounts of older clients, IIROC said. Based on a semi-annual review conducted by its employees between November 30, 2012 and July 31, 2017, IIROC said that most of the client’s holdings were in medium and high risk assets.

    In eight of the twelve periods examined, the concentration of their total portfolio in securities in the energy sector ranged between 29% and 62%. The holdings on her TFSA account were at high risk between 39% and 90% and her margin account was in debit for 22 of the 57 57 months covered during the period, although it did not exceed 10% of the total securities accounts.


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