'Inappropriate investments' attract $110K fine

'Inappropriate investments' attract $110K fine

Dundee supervisors are accused of failing to ensure the clients’ investment objectives and risk tolerances are in line with their financial situation and investment knowledge, failing to question aggressive trading activity and use of margin, which resulted in substantial financial losses for both couples when the market crashed.

The two couples, who aimed to use low-risk investments to supplement retirement payments from the Canada Pension Plan (CPP) and Old Age Security Program (OSA), lost 60.2 per cent and 36 per cent of their investments, accounting for $629,750 and $64,000 respectively, during the financial crisis.

Both couples have been compensated for their losses by Dundee and Gareau, in one instance, according to IIROC.

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