Following a penalty hearing held on May 16, 2016 in Toronto, Ontario, a hearing panel of the Investment Industry Regulatory Organization of Canada imposed the following penalties on Kim Husebye:
- A fine of $20,000;
- A six-month prohibition on re-registration with IIROC; and
- A requirement to successfully complete the Conduct and Practices Handbook course prior to seeking re-registration.
Husebye is also required to pay costs in the amount of $10,000. Read the penalty decision.
The penalty decision document says IIROC stated during a January hearing that the “respondent recommended high-risk, leveraged exchange traded funds to several of his clients […] The respondent overlooked or disregarded clear, unambiguous disclosure of the significant risks associated with an investment in the leveraged exchange traded funds, and concentrated a significant amount of his clients’ accounts in these securities.”
In an earlier decision dated February 2, 2016, the hearing panel found Husebye failed to use due diligence to ensure that investment recommendations were suitable for his clients, contrary to IIROC Dealer Member Rule 1300.1(q). Read the panel’s decision.
IIROC formally initiated the investigation into Husebye’s conduct in August 2012. The conduct occurred while he was a registered representative with the Oakville, Ontario branch of Lakeshore Securities Inc., an IIROC-regulated firm. Husebye is no longer a registrant with an IIROC-regulated firm.