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by Mike Caswell
The Investment Industry Regulatory Organization of Canada has ruled against former Manulife Securities Inc. employee Alvin Rupert Jones, finding that he placed clients into an outside business that ultimately failed, without disclosing the investments to Manulife. Over a two-year period, he persuaded clients to sell investments that they held through Manulife and to place the proceeds into a high-tech garden hose company. That company was supposedly looking at selling to retailers such as Canadian Tire and Home Hardware.
The findings are contained in a decision that IIROC released on Monday, Sept. 21. It comes as part of a case that IIROC has been pursuing against Mr. Jones over a business called Aqua Clear-Flo. The business was active in 2015 and 2016, and included Mr. Jones for about 18 months. He held himself out as the chief financial officer and incorporated a numbered company that Aqua Clear-Flo operated through, IIROC said.
The problem, at least according to IIROC, is that Mr. Jones participated in the business without telling Manulife. As with most who work in the a registered capacity, Mr. Jones was required to tell his employer about any outside business activity and obtain approval. Mr. Jones was well aware of the rules, as he had obtained permission for a prior business, IIROC says.
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