IIROC bans and fines investment advisor

An IIROC hearing panel has permanently banned and fined a former registered representative.

Kenneth Edward Smith was banned permanently and fined $125,000, and must also pay costs of $20,000. The reasons for the decision will be published on IIROC’s website.

In an earlier decision on liability dated April 6, the hearing panel found that Smith:

• engaged in an outside business activity without obtaining the approval of his employer;
• engaged in personal financial dealings with his client;
• placed off-book investments for his client, without the knowledge or consent of his employer;
• took $10,000 from a former client to invest the funds on her behalf, without the knowledge or consent of his employer; and
• failed to cooperate with IIROC staff during their investigation.

IIROC formally initiated the investigation into Smith’s conduct in January 2017. The violations occurred while he was a registered representative with Queensbury Securities Inc., an IIROC-regulated firm, in Nanaimo, B.C. Smith is no longer a registrant with an IIROC-regulated firm.

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