On December 30, 2015, a hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a settlement agreement, with sanctions, between IIROC staff and Gary Clarke.

Clarke admitted to IIROC that he made unsuitable recommendations for two client accounts and placed discretionary trades on behalf of one client account. Specifically, he admitted to the following violations:

  • Between August 2011 and December 2012, Clarke failed to use due diligence to ensure that the recommendations that he made for the account of two of his clients were suitable for them, contrary to IIROC Dealer Member Rule 1300.1(q);
  • In September and October 2011, Clarke engaged in discretionary trading for the account of two of his clients without the account having been approved and accepted as a discretionary account, contrary to IIROC Dealer Member Rule 1300.4; and
  • Between November 2011 and December 2012, Clarke failed to use due diligence to ensure that the recommendations that he made for the account of one of his clients was suitable for him, contrary to IIROC Dealer Member Rule 1300.1(q).

Pursuant to the settlement agreement, Clarke agreed to the following penalties:

  • A two-month suspension from registration in any capacity;
  • Payment of a fine in the amount of $30,000;
  • A requirement to successfully rewrite the exam based on the Conduct and Practices Handbook; and
  • A requirement that any future registration shall be subject to a six-month period of close supervision.

Clarke also agreed to pay costs in the amount of $2,500.

Read the settlement agreement.

IIROC formally initiated the investigation into Clarke’s conduct in October 2013. The conduct occurred while he was a registered representative with the Prince George branch of Raymond James Ltd., an IIROC-regulated firm. Clarke is no longer a registrant with an IIROC-regulated firm.