The Investment Industry Regulatory Organization of Canada (IIROC) announced on April 23 that Preston Henry Smith, a Calgary investment advisor, has been sanctioned with a two and a half year suspension plus a fine of $100,000.
In a statement, the regulator explained, “Mr. Smith failed to learn and remain informed of essential facts about his clients and recommended high-risk investments that were inconsistent with their personal and financial circumstances.”
Specifically, Smith admitted that for five groups of clients he made recommendations that were not suitable and failed to use due diligence to learn and remain informed of the essential facts regarding these clients, says the regulator. He also failed to use due diligence and remain informed of the essential facts pertaining to another client.
As part of a settlement agreement with IIROC, in addition to the fine and suspension, Smith has also agreed to pay costs in the amount of $5,000.
IIROC formally initiated the investigation into Smith's conduct in February 2015. The conduct occurred while he was a registered representative with the Calgary branch of Blackmont Capital Inc., Macquarie Private Wealth Inc., and Richardson GMP Limited. He is no longer a registrant with an IIROC-regulated firm.