An ex- Assante advisor, who faces first-degree murder charges, violated industry regulations, the Investment Industry Regulatory Organization of Canada
(IIROC) announced Tuesday.
Following a disciplinary hearing on March 3, IIROC determined that Brian Malley failed to cooperate with an investigation, failed to know the essential facts of 12 of his clients, made unsuitable recommendations to 10 clients, and engaged in discretionary trading in the accounts of seven clients.
IIROC also concluded that Malley's wife, Christine, violated regulatory rules including failing to cooperate with an investigation, and failing to exercise her supervisory responsibilities concerning the accounts of 12 clients.
The violations allegedly occurred when Malley was a rep and his wife was a branch manager with Assante Capital Management Ltd. in Red Deer, Alta. IIROC has yet to issue penalties against the accused.
In 2012, Malley was accused of first-degree murder against a former client, who was killed by a letter bomb in 2011. The allegations have yet to proven in court.
A class action suit alleging negligence and fraud has also been filed by a number of Malley's former clients.
Courts to proceed with class action suit against ex-advisor