Following a penalty hearing held on April 15, 2013, an IIROC hearing panel imposed the following penalties on Charles B. Floyd and James Gordon McDonald:
Against Floyd:
(a) A $100,000 fine;
(b) Disgorgement of $5,860; and
(c) A permanent ban from registration. Floyd must also pay costs in the amount of $15,000.
Against McDonald:
(a) A $35,000 fine;
(b) A one-year suspension from acting as a branch manager or in any supervisory capacity commencing June 3, 2013 and ending June 3, 2014;
(c) A requirement that he rewrite and pass the Conduct and Practices Handbook examination; and
(d) A requirement that he redo and pass the Branch Managers Course before being eligible for reinstatement as a branch manager or any other supervisory role.
McDonald must also pay costs in the amount of $5,000.
The penalty decision can be found here.
In an earlier decision dated January 22, 2013, the hearing panel found that Floyd made unsuitable recommendations and discretionary purchases in one client’s account and that McDonald failed to supervise the account.
The decision on liability can be found here.
Also read:
IIROC fines branch manager $35,000 for inadequate supervision