TORONTO - An investment industry regulator says Donald Kochan will pay a fine of $50,000 as well as other fees for buying unsuitable high-risk securities for two of his clients.
The Investment Industry Regulatory Organization of Canada said Tuesday that Kochan admitted he failed to use due diligence for securities he bought for clients between March 2004 and December 2010.
The organization said Kochan should have ensured the investments were suitable for the clients based on their financial situations, investment knowledge, objectives and risk tolerance.
Both of the clients had little investment knowledge and were of retirement age, the regulator said.
Kochan also executed a number of trades for three clients without their knowledge or consent. They only learned of the trades afterwards.
As part of the settlement, Kochan will also return $13,000 of commissions and pay for $2,500 of investigation costs.
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