IIROC fines rep $35,000

On May 28, 2013, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC), accepted a Settlement Agreement, with sanctions, between IIROC staff and Robert Jay Kilgannon.

Kilgannon admitted that he failed to use due diligence to ensure that a product he recommended to a client was suitable for her.

Specifically, Kilgannon admitted to the following violation(s):

Between February 2007 and January 2009, he:

(i) Failed to use due diligence to learn and remain informed of the essential facts concerning Nortel Cumulative Redeemable Class A Preferred Shares Series 5, contrary to IDA Regulation 1300.1(a) (now Dealer Member Rule 1300.1(a)); and

(ii) Recommended the purchase of these shares to his client without using due diligence to ensure that the recommendations were suitable for the client based on her financial situation, investment knowledge, investment objectives and risk tolerance contrary to IDA Regulation 1300.1(q) (now Dealer Member Rule 1300.1(q)).

Pursuant to the Settlement Agreement, Kilgannon agreed to the following penalty:

(a) A fine in the amount of $35,000;

(b) A period of four months of close supervision commencing on the date of acceptance of the Settlement Agreement; and

(c) Re-write and successfully complete the Conduct and Practices Handbook examination within 12 months of the acceptance of the Settlement Agreement.

Kilgannon also agreed to pay costs in the amount of $5,000.

The Settlement Agreement and the Hearing Panel’s decision will be made available at www.iiroc.ca.

Documents related to ongoing IIROC enforcement proceedings – including Reasons and Decisions of Hearing Panels – are posted on the IIROC website as they become available. Click here to search and access all IIROC enforcement documents.

IIROC formally initiated the investigation into Kilgannon’s conduct in April 2011. The conduct occurred when he was a Registered Representative with an Oshawa, Ont. branch of RBC Dominion Securities Inc., an IIROC-regulated firm, where Kilgannon is still registered.

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