The Canadian Investment Regulatory Organization (CIRO) has fined Patrick Joseph Conlin and thrown him out of the industry, after he completed know your client (KYC) information on account opening documents for the securities dealer that his mutual fund firm was affiliated with. He also failed to process transactions for a client and failed to cooperate with the regulator’s investigation into his conduct.

In addition to permanently banning Conlin from conducting securities related business with any CIRO member firm, the regulator also fined Conlin $75,000 and assessed costs in the amount of $10,000.

Prohibited from recording KYC information 

The London, Ontario dealing representative, registered between August 2019 and October 2021 when he was terminated, was permitted to assist clients with completing the biographical information on application forms for the securities dealer, but approved persons with the firm were prohibited from recording KYC information. The regulator’s notice of hearing says the firm advised its approved persons that such activity exceeds the scope of their mutual fund registration.

In acquiring a new client, Conlin arranged to have the client’s investments held at one company transferred in kind to the securities dealer associated with his firm. He later opened accounts at his own firm and prepared transfer authorization forms to transfer the cash holdings from the securities dealer to the mutual fund dealer.

Beginning in March 2021 the client asked Conlin for advice about investments that were still held at the securities dealer. He provided advice to sell and buy certain securities but did not recommend the client switch firms. “At no time was the respondent registered to trade or advise in non-mutual fund securities,” the notice states.

Failed to execute trades 

He later failed to execute trades for the client, and the client complained, saying they incurred losses as a result. The firm has offered compensation to the client and assigned their accounts to another approved person.

After failing to respond to the regulator’s requests for a statement and later an interview, Conlin requested multiple extensions and ultimately did not respond at all. Conlin is not currently registered in the securities industry in any capacity.