After giving third parties access to his firm’s login credentials in a bid to switch his book of business from Assante Financial Management Ltd. to now defunct, Wealthsimple Advisor Services Inc., former dealing representative, Charles Hogg is being sanctioned by the New Self-Regulatory Organization of Canada (New SRO, now named the Canadian Investment Regulatory Organization, or CIRO). Hogg is being fined $27,500 and assessed costs in the amount of $5,000 after the regulator’s hearing panel accepted a settlement agreement, in which Hogg also agrees to a nine month ban from conducting securities related business while employed with any dealer member firm.
Related:
Defunct Wealthsimple Advisor fined
In the most recent proceedings related to Wealthsimple, the Kitchener, Ontario dealing representative, pursuant to the firm’s onboarding process, provided confidential client information, including social insurance numbers, dates of birth, addresses, email addresses, phone number and account numbers, account types, and amounts held. During this process, he experienced technical difficulties and engaged the help of another representative, from another firm altogether, to help him send the information to Wealthsimple.
Assante’s customer relationship management system was accessed, information was shared remotely and reports were saved on the second representative’s computer. Later, Weathsimple staff used the login credentials themselves to obtain additional client information. “Assante was not aware of, and never authorized, any of the activity described,” the settlement agreement states. All told, in this instance, 576 clients had their information transferred to Wealthsimple without their consent.
In addition to the fine, ban and costs, Hogg must also successfully complete ethics coursework offered by the IFSE Institute prior to becoming re-registered in the future.
