An insurance agent in British Columbia who was also a mutual fund dealer governed by the Canadian Investment Regulatory Organization (CIRO), has had his insurance license suspended for one year after the Insurance Council of British Columbia (ICoBC) opted for reciprocal enforcement to match some sanctions already imposed by CIRO.
According to the intended decision in the case, David Alan Robertson, first licensed as a life and accident and sickness insurance agent in 1999, went against his fund firm’s policies prohibiting personal financial dealings with clients when he sought and obtained a $15,000 loan from a 77-year-old client.
“Between 2019 and 2022 the licensee completed and submitted annual questionnaires to the firm in which he stated that he had not entered into any personal financial dealings or borrowing with clients,” the intended decision in the insurance council’s case states. Robertson resigned from the firm in November 2022. In December 2022 a family member who had the client’s power of attorney discovered the loan. Robertson has since repaid the loan in full.
In the CIRO case, Robertson was fined $10,000, ordered to pay costs in the amount of $2,500 and the regulator imposed a 12-month prohibition from conducting securities-related business. The insurance council determined that the conduct also breached the council’s rules pertaining to trustworthiness and conflicts of interest.
“Acts of dishonesty outside your professional life may reflect on your trustworthiness to hold an insurance license,” the intended decision states. “Although none of the licensee’s insurance clients in British Columbia were affected by the CIRO decision and none of his clients had reported any other incidents, council remained concerned about the licensee’s potential dealings with elderly or otherwise vulnerable clients.”
In addition to the one-year suspension, Robertson must also be supervised for one year of active licensing on his return. The agent was additionally required to complete four remedial courses and pay the council’s costs in the amount of $1,250.
