A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has accepted a settlement agreement, with sanctions, between IIROC staff and Allan Mansfield Bush.

In the agreement, Bush admits that he made unsuitable investment recommendations to two clients, and that he directly compensated three clients for account losses.

The penalty against Bush is a $15,000 fine and $5,000 in costs.

Specifically, Bush admits that he:

  • Failed in his suitability obligations when he recommended highly speculative investments to two clients, but did not use due diligence to ensure those recommendations were suitable for the clients’ financial situations, investment knowledge, investment objectives and risk tolerance, contrary to IDA Regulation 1300.1(q) (now IIROC Rule 1300.1(q)); and
  • Compensated three clients for account losses, without the knowledge or approval of his firm, contrary to IDA By-law 29.1 (now IIROC Rule 29.1).

The Rule 1300.1(q) violation occurred between November 2006 and June 2008, and the Rule 29.1 violation occurred between November 2007 and February 2009. IIROC began the investigation into Bush’s conduct in January 2010. The violations occurred when he was a registered representative with the Waterloo, ON branch of CIBC World Markets, an IIROC-regulated firm. Bush is currently registered in the same position.