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by Mike Caswell
The Investment Industry Regulatory Organization has imposed a combined $95,571 in sanctions against former Scotia Capital Inc. employees Lyle Langlois and James Brown over undisclosed payments they received from a fund manager. IIROC says that the men received money in the form of marketing support that fell outside the "traditional regulatory framework." The men had invested about $30-million of client money with the fund manager that made the payments.
The penalties for the pair are contained in a settlement agreement that IIROC released on Monday, May 16. The agreement identifies the men as Vancouver-area employees of Scotia Capital from 2013 to 2017, operating under the name Langlois Brown Wealth Management. Mr. Langlois has worked in a registered capacity since 1986 and Mr. Brown since 1997.
The settlement pertains to dealings the men had with Vertex One Asset Management Inc., which at the time was a fund manager with its office in Vancouver. According to IIROC, Mr. Langlois and Mr. Brown had been offering Vertex funds to clients since 2002, and as of 2014 had placed about $30-million worth of client money in Vertex funds. In 2014, Vertex approached the men with a proposal in which Vertex would provide "marketing support."
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