21:30:21 EST Fri 04 Dec 2020
Enter Symbol
or Name
USA
CA



Login ID:
Password:
Save

IIROC suspends BMO ex Brum over excessive trades

2020-10-27 19:16 ET - Street Wire

This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Mike Caswell

The Investment Industry Regulatory Organization of Canada has imposed an 18-month suspension on former BMO Nesbitt Burns Inc. employee Paul Brum for excessive trading that inflicted losses in the hundreds of thousands of dollars on three clients. The regulator says that the trading contributed to Mr. Brum earning $396,542 in fees from one of his clients over a six-year period. That client, meanwhile, suffered losses that later resulted in BMO paying out $560,000.

The suspension for Mr. Brum is contained in a settlement agreement that IIROC released on Monday, Oct. 26. In addition to the 18-month suspension, Mr. Brum must pay a $10,000 fine, an amount that would be higher were it not for his inability to pay. He must also serve 12 months of supervised release should he return to the industry.

The penalties, as set out in Mr. Brum's settlement, stem mostly from trades he made in the account of a client that IIROC only identifies as "SF." According to IIROC, the client had opened several accounts with Mr. Brum in April, 2010. Her account opening documents indicated that she had a low tolerance for risk and may require income from her portfolio.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS

© 2020 Canjex Publishing Ltd. All rights reserved.


Reader Comments - Comments are open to paying subscribers of Stockwatch and unmoderated, although libelous remarks, obscene language and impersonations may be deleted. Opinions expressed do not necessarily reflect the views of Stockwatch.
For information regarding Canadian libel law, please view the University of Ottawa's FAQ regarding Defamation and SLAPPs.