A Victoria financial planner has been fined $75,000 after his professional association cited him for several violations.
Gerry Connor, who runs Victoria-based company Connor Financial, had to resign his company's membership in the Mutual Fund Dealers Association of ÎÚÑ»´«Ã½ and was issued a permanent ban from acting in some capacities as part of a decision released last month by the regulatory agency.
Although he wasn't found to have profited in any improper way at the expense of his clients, Connor admitted to a variety of infractions, including a failure to send written statements and status reports to clients, the lack of itemized daily records of purchases and sales, and his company's acceptance of 27 clients outside of ÎÚÑ»´«Ã½ where Connor Financial conducted at least six trades in provinces in which he wasn't registered.
"A lot of these are basic requirements," said Shawn Devlin, vice-president of enforcement for the MFDA, which represents 136 members and 75,000 approved salespeople.
Devlin said the MFDA rules are intended to protect clients by ensuring they have proper information about how their money is being handled.
He said it's rare for members to fail to meet such fundamental requirements.
An MFDA panel that approved the settlement wrote that Connor "revealed a contemptuous disregard for the regulatory system under which the MFDA operates. The pattern of non-compliance was prolonged and persistent."
Connor buys airtime on CFAX 1070 to host a Saturday financial advice program. Jim Blundell, CFAX's vice-president and general manager, said there are clear disclaimers that the show is paid programming.
"We don't endorse it, we don't condone it, we disclaim just like any advertising outlet would do," said Blundell.
No one has complained about Connor, and the radio station isn't in a legal position to ban people from buying ads, said Blundell. Paid radio airtime is "buyer beware," he said.
"I don't think we're in a position to go to these people and say before we're in a position to put you on the air we want to judge whether your product is legit," said Blundell.
Connor is the third financial adviser to purchase airtime on CFAX who has faced troubles from a regulatory body in recent years.
Connor has also purchased numerous advertisements in the ÎÚÑ»´«Ã½.
Although the MFDA permanently banned Connor from some jobs, such as becoming a branch manager or compliance officer, it did not ban him from selling mutual funds.
Securities records show Connor registered with a company called Portfolio Strategies Corporation, a Calgary-based mutual fund dealer, where he is again selling mutual funds out of his Victoria office. [email protected]
