Regulator responds to advisor’s dealings with a vulnerable client
The Canadian Investment Regulatory Organization (CIRO) has issued a decision concerning David Alan Robertson, a former dealing representative, approving a settlement that includes a monetary penalty and a prohibition from engaging in securities-related business. The decision, dated June 23, 2025, follows a settlement hearing held on May 30, 2025.
Robertson admitted that between February 2019 and May 2024, he breached Mutual Fund Dealer Rule 2.1.4 by borrowing $15,000 from an elderly client. According to the decision, this action created a conflict of interest that he neither disclosed to his Dealer Member, Sun Life Financial Investment Services (Canada) Inc., nor addressed in a manner that prioritized the client’s best interests. In addition, Robertson submitted false or misleading annual questionnaires to Sun Life from 2019 to 2022, affirming he had not engaged in personal financial dealings or borrowing with clients.
The loan was not formalized in writing and lacked defined terms for repayment, interest, or duration. CIRO noted that Robertson used the funds for personal expenses. The misconduct continued over a period of 52 months.
The arrangement was discovered around December 2022, when the client’s family member and Power of Attorney became aware of the loan and contacted Robertson seeking repayment. In January 2023, Robertson drafted a handwritten “Personal Services Agreement” aiming to offset the loan with services rendered.
The Power of Attorney filed a formal complaint with Sun Life around January 25, 2023. Although Sun Life offered to reimburse the client, Robertson had already arranged a repayment schedule of $1,000 post-dated cheques spanning March 1, 2023, to May 1, 2024. The loan has since been fully repaid.
The CIRO hearing panel approved the settlement agreement, which includes a fine of $10,000, a 12-month prohibition from conducting securities-related business in any capacity with a CIRO-registered mutual fund dealer, and $2,500 in costs.
The panel recognised the seriousness of the misconduct, particularly the financial gain and the involvement of a vulnerable client, compounded by the absence of formal loan terms. Nonetheless, mitigating factors included Robertson’s cooperation, repayment of the loan, remorse, and a clean disciplinary record. Robertson is currently not registered in the securities industry.
