On November 4, 2016 a hearing panel of the Investment Industry Regulatory Organization of Canada accepted a settlement agreement, with sanctions, between IIROC staff and Sherman Dahl.

IIROC says Dahl admitted he made unsuitable recommendations for two clients, failed to update the account information of two clients after their circumstances materially changed, and placed discretionary trades on behalf of two clients.

Specifically, Dahl admitted to the following violations:

  • Between July 2011 and December 2014, Dahl failed to use due diligence to ensure that the recommendations that he made for the accounts of his client were suitable for her, contrary to Dealer Member Rule 1300.1(q).
  • Between July 2011 and December 2014, Dahl failed to update the account information of his client after her personal and financial circumstances materially changed, contrary to Dealer Member Rules 29.1 and 1300.1(a).
  • Between September 2006 and May 2013, Dahl failed to use due diligence to ensure that the recommendations that he made for the accounts of his client were suitable for him, contrary to Dealer Member Rule 1300.1(q).
  • Between July 2013 and December 2014, Dahl failed to update the account information of his client after her personal and financial circumstances materially changed, contrary to Dealer Member Rules 29.1 and 1300.1(a).
  • Between January 2011 and February 2012, Dahl engaged in discretionary trading in the accounts of two clients, without the accounts having been approved and accepted as discretionary accounts, contrary to Dealer Member Rule 1300.4

Pursuant to the Settlement Agreement, Dahl agreed to the following penalties:

  • A fine of $35,000;
  • A prohibition from applying for registration in any capacity with IIROC for a period of 12 months;
  • A requirement that he successfully complete the Conduct and Practices Handbook course prior to being eligible for approval; and
  • Upon re-approval a 12-month period of close supervision.

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

Read the settlement agreement.

IIROC formally initiated the investigation into Dahl’s conduct in November 2014. The conduct occurred while he was a registered representative with the Vernon branch of National Bank Financial Inc., an IIROC-regulated firm. Dahl is no longer a registrant with an IIROC-regulated firm.