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by Mike Caswell

The B.C. Securities Commission has imposed a 20-year ban on former brokerage industry employee David Andrew Schramm for trading and providing investment advice without being registered. The BCSC says that Mr. Schramm held himself out as a financial adviser and had trading authority over the accounts of 29 people. He collected $231,000 for his services over a three-year period, according to the BCSC.

The ban for Mr. Schramm is contained in a settlement agreement that the BCSC released on Tuesday, Aug. 22. The settlement bars Mr. Schramm from trading, promoting stocks and from working in a registered capacity. Mr. Schramm is permitted to trade in his own name provided that he ensures the person doing the trading is registered and has a copy of the terms of his ban. Mr. Schramm must also pay a $20,000 fine. The ban and fine represent a negotiated settlement, in which Mr. Schramm has admitted to the violations.

The case arises from investment services that Mr. Schramm began providing in January, 2017, about 13 years after he left the brokerage industry. According to the BCSC, he traded for 29 people, performing services that one would expect of an investment adviser. Among other things, he executed trades, provided regular portfolio updates and discussed investment goals. For his efforts, he received payments that usually amounted to 1 per cent of the annual return in the accounts, the BCSC says.

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