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Local investment dealer fined

A local investment dealer has been fined $40,000 for exposing a senior client to a short-term, high-risk investment over a two-year period.

David Claude Bugden with Scotia Capital Inc. agreed to a settlement, with sanctions, between himself and the Investment Industry Regulatory Organization of Canada.

Bugden admitted that he made recommendations to a client that were unsuitable and inconsistent with good business practice, and signed account documentation prepared by his partner without verifying whether the recorded risk tolerance and investment objectives were suitable for the clients. The recommendations were made between January 2012 and December 2014.

In January 2010, May 2011 and June 2012, he approved account documentation without using due diligence to learn the essential facts relative to two clients which is contrary to IIROC rules.

Bugden has been fined of $25,000, inclusive of disgorgement of commissions obtained in the amount of about $12,000; a fine of $15,000; close supervision for one year; and must successfully rewrite the conduct and practices handbook examination within six months. He also agreed to pay costs in the amount of $5,000.

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