P.E.I. financial adviser James Wood fined $40K, suspended

A P.E.I. financial adviser has been fined and suspended for failing to use due diligence in informing a client about investments.

James Wood was fined $40,000 and suspended for six months.

The Investment Industry Regulatory Organization of Canada (IIROC) ordered the penalties after a hearing last month in Charlottetown.

3 violations

IIROC found that Wood violated three rules for dealer members between 2010 and 2013 including: failing to use due diligence to learn and remain informed of the essential facts relative to the client; failing to ensure recommendations to the client were suitable; and failing to ensure the client was qualified as an accredited investor before buying securities.

In its decision, IIROC found the client was "eager to invest" but was not experienced in high risk investments and lost just over $124,000.

The panel said if Wood had followed IIROC's rules in assessing the client's finances, he "would easily have recognized these investments were all out of the client's league."

Penalties includes costs

As part of the discipline process Wood will have to rewrite the Conduct and Practices Handbook examination within 12 months of re-registration as a member with IIROC and once he re-registers he'll be under close supervision for six months.

The discipline panel also ordered Wood to pay back $535 in commission and to pay $15,000 to cover the cost of the investigation.

According to the decision by IIROC, Wood told the panel he had little ability to pay any penalties.

When contacted by CBC Wednesday, Wood said he disagreed with the penalties but, "There's not much I can do about it."

Wood did not appeal the finding by IIROC.

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