Former rep fined $45,000 for unsuitable investments

An IIROC dealer who made unsuitable investment recommendations resulting in client losses faces a six-month ban and a $45,000 fine.

Daryl Rebeck, a Vancouver advisor at the time, made unsuitable recommendations to a couple in their sixties after he used margin trading and other investment strategies inconsistent with the clients’ objectives.

An IIROC settlement agreement on March 23, announced this week, indicated Rebeck’s investment management between 2010 and 2013 resulted in significant financial losses for the couple, who had more than $1 million to invest after receiving an inheritance.

“At that time they were both in their sixties and they had virtually no experience with investing,” the IIROC settlement states. The clients “incurred significant losses which were magnified due to the use of margin.”

Rebeck faces a fine of $45,000 and agreed to pay costs of $5,000. He is banned from IIROC registration for six months and must work under supervision for 12 months after returning to work as an advisor. He has not been an IIROC approved person since November 2013.

Read the settlement agreement here.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.