An IIROC hearing panel has banned a former advisor and fined him $140,000 for suitability failures and unauthorized trading.
Rodney Joseph Nieswandt, a registered rep with CIBC World Markets in Regina, Sask., from 2001 to 2016, sold clients’ deferred sales charge (DSC) mutual funds, principle protected notes (PPNs) and structured notes prior to maturity, and then purchased the same types of securities for clients, IIROC alleges in it reasons for decision document. The transactions led to early redemption fees and DSCs, and many trades were not authorized by clients.
Nieswandt did not participate in the disciplinary hearing.
For one client, a retired widow, IIROC describes DSCs and early redemption charges totalling $10,721 between 2012 and 2015, and commission charges of $54,827. Meanwhile, the client’s account suffered losses of $18,759.
“These trades incurred unnecessary charges to the client apparently for the sole benefit of the Respondent, and the transactions were not suitable,” the decision says.
IIROC describes similar transactions for three other clients that generated large commissions and fees. Those accounts had gains during the period.
The SRO also alleges that Nieswandt compensated a client for account losses without his firm’s knowledge or approval.
Nieswandt, who is no longer registered, was also ordered to pay costs of $10,000.
Read the reasons for decision here.