A hearing panel of the Investment Industry Regulatory Organization of Canada has found that Bryan Dale Claggett violated an IIROC rule when, without his firm’s knowledge, he attempted to settle a client complaint by paying the client money.

In its decision dated April 4, 2011, the panel dismissed a second charge which alleged that Claggett had conducted discretionary trades in client accounts without the written authorization of the respective clients.

The panel has ordered both IIROC and Claggett to provide written submissions on the appropriate penalty. Once the hearing panel determines the penalty, its decision will be made available at http://www.iiroc.ca/.

Specifically, the panel found that Claggett engaged in conduct unbecoming and detrimental to the public interest, contrary to IIROC Rule 29.1, when he paid $14,000 to a client to resolve that client’s complaint, without the prior knowledge or consent of his firm.

The violation occurred on or about February 9, 2006, while Claggett was a registered representative at the Vancouver branch of BMO Nesbitt Burns, an IIROC-regulated firm. He is currently employed at the Vancouver office of Canaccord Genuity Corp., an IIROC-regulated firm.