The investment Industry Regulatory Organisation of Canada (IIROC) has fined two investment advisors over their failure to conduct proper due diligence in determining investment suitability for clients. The enforcements demonstrate IIROC's hawkishness over investor suitability issues and send a clear message to advisors on due diligence. According to the regulator, Robert Jay Kilgannon and Henry Gerald Martens failed to use due diligence to ensure that the securities they recommended to clients were suitable. More specifically, they failed to learn and remain informed of the essential facts concerning the nature of the securities that they recommended. Additionally, Kilgannon and Martens recommended the purchase of securities without ensuring that the investment was suitable based on the clients' financial situation, investment knowledge, investment objectives and risk tolerance. Kilgannon's failures related to one client, while Martens's related to two clients. IIROC levied
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