An employee at CIBC Wood Gundy in Nelson has been fined for poor supervision of a former staff member who gave risky investment advice to clients.
Robert Trickey, who is currently a financial adviser at Wood Gundy, was penalized $40,000 along with a $5,000 fee for costs after admitting he failed to adequately monitor Geraldine Mannings between 2009 to 2013. Trickey was the branch supervisor during that time.
In a Sept. 6 settlement agreement that concluded a four-year investigation, the Investment Industry Regulatory Organization of Canada (IIROC) said Trickey “was aware of concerns regarding the increase in risk in some of Mannings’ clients’ accounts, some of whom were seniors and were on fixed incomes.”
Trickey, the IIROC said, “took inadequate steps to independently assess whether the increases in risk tolerance were suitable for clients. In addition, he failed to adequately document all of his supervision activities.”
CIBC World Markets Inc. was also fined $125,000.
Trickey did not respond to a request for comment from the Star, but he is prevented from making any statements that would contradict the settlement agreement.
Mannings was previously fined a total of $40,000 in 2015 for making “unsuitable recommendations regarding the purchase and holdings of securities in several clients’ accounts” from January 2012 to June 30, 2013, according to the IIROC.
However, she had no prior disciplinary history and made no personal financial gain.
Mannings, who had been working as a registered representative since 1967, left Wood Gundy in July 2013. The IIROC said Mannings is not currently registered to work.
The IIROC oversees investment dealers and trading activity on debt and equity marketplaces and is also responsible for investigating misconduct.