A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has found that Brian Vaughn Wilson made unsuitable recommendations for a client, a resident of Nova Scotia. The panel also found that Wilson engaged in unauthorized trading in that client’s account.

At the disciplinary hearing held on July 26, 2011, the panel heard submissions on penalty, but has reserved that decision. The panel’s Decision and Reasons on liability and penalty will be made available at www.iiroc.ca.

Specifically, the panel found that Wilson:

  • failed to use due diligence to ensure that recommendations were suitable for his client, and failed to advise her that monthly withdrawals from her account could not be sustained by the return on investment, resulting in substantial depletion of the account, contrary to IDA Regulation 1300.1 (q) and IIROC Rule 1300.1 (q); and
  • engaged in unauthorized trading in the client’s account by making transactions in relation to her account without her knowledge or consent, contrary to IDA By-law 29.1 and IIROC Rule 29.1.

The violations occurred from about February 2006 to May 2009, while Wilson was a registered representative with the Ottawa branch of BMO Nesbitt Burns, an IIROC-regulated firm. IIROC began its investigation into Wilson’s conduct in November 2009. He is no longer a registrant with an IIROC-regulated firm.