Outside activities, accepting monies from issuer leads to $20,000 fine

A decision made by the investment dealer division of the Canadian Investment Regulatory Organization (CIRO) delivered August 9 has resulted in sanctions imposed on Dominic Spooner, a former representative with iA Private Wealth Inc.

During a recent CIRO panel hearing, it was disclosed that he went behind the firm’s back to broker off-book investments for 11 existing firm clients and five non-clients, between February and April 2018. 

During the same period, Spooner broke Investment Industry Regulatory Organization of Canada’s (IIROC) rule 1400 by facilitating receipt of a finder’s fee using his firm’s own agreement, signing the agreement on behalf of the firm without authorization. 

“Mr. Spooner was frustrated by the refusal by the investment banking department to permit the five non-clients to participate in the financing. Despite his communications,” the CIRO decision states, “Mr. Spooner altered the firm’s standard finder’s fee agreement by changing the required two signatures by authorized firm representatives to his signature alone, adding his title and firm contact information, and signing the altered agreement (the amended agreement). Mr. Spooner was not authorized by the firm to sign the amended agreement, nor did he disclose the amended agreement to anyone at the firm.” 

The decision continues: “Mr. Spooner admitted that he signed the amended agreement to facilitate payment to his private company of commissions for the five non-clients, despite the firm’s requirement that commissions were to be paid to the firm,” it states. “He did not tell the firm he received commissions of $35,500 for the participation of non-clients.” 

The regulator levied a number of sanctions, including a $20,000 fine and disgorgement of $35,500 in commissions.

CIRO also barred him from registration for two years and ordered strict supervision for 12 months upon his return. The regulator also ordered that he successfully complete the Conduct and Practices Handbook.

The hearing panel has directed all involved to make submissions on costs, which will be determined separately.