On May 21, 2013, a hearing panel of the Investment Industry Regulatory Organization of Canada accepted a settlement agreement, with sanctions, between IIROC staff and Henry Gerald Martens.
Martens admitted he failed to use due diligence to know the essential facts relative to two of his customers and to ensure the recommendations he made for them were suitable.
Specifically, Martens admitted to the following violation(s):
a) From approximately January 26, 2007 to June 2, 2009, he failed to use due diligence to learn and remain informed of the essential facts relative to two customers, contrary to IDA Regulation 1300.1(a) (IIROC Rule 1300.1(a) after June 1, 2008); and
b) From approximately February 1, 2007 to April 13, 2008, he failed to use due diligence to ensure the recommendations he made for two customers were suitable based on their financial situation, investment knowledge, investment objectives and risk tolerance, contrary to IDA Regulation 1300.1(q).
Pursuant to the settlement agreement, Martens agreed to the following penalty:
a) A fine in the amount of $50,000; and
b) A one-year suspension of approval in any capacity.
He also agreed to pay costs in the amount of $5,000.
Read the settlement agreement.
IIROC formally initiated the investigation into Martens’ conduct in February 2012. The alleged violations occurred when he was a registered representative with the Kelowna branch of Wolverton Securities, an IIROC-regulated firm. Martens is no longer a registrant with an IIROC-regulated firm.