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by Mike Caswell

The Canadian Investment Regulatory Organization has imposed a two-year ban and $55,000 in penalties on former iA Private Wealth Inc. employee Dominic Spooner for improperly accepting commissions. CIRO said that Mr. Spooner intentionally violated firm policies by placing non-clients into a private placement and by directly accepting a fee from the issuer. He carried out the transaction even after his superiors had refused permission.

The penalties for Mr. Spooner are contained in a decision that CIRO released on Wednesday, Aug. 9. The regulator has banned him from working in a registered capacity for two years. He must also disgorge commissions of $35,500 and pay a $20,000 fine (with the amounts taking into account his previous payment of $30,000 to his firm). Should he return to the industry, he will be subject to 12 months of strict supervision.

The sanctions arise from what CIRO described as a "severe lapse of professional judgment" by Mr. Spooner. On Jan. 29, 2018, he had a group of six non-clients who were looking to buy shares of C21 Investments Inc., a cannabis listing on the Canadian Securities Exchange. The company was a "hot issue" for which there was plenty of demand. Mr. Spooner had placed several clients into the private placement, and sought permission from his firm to place the group of non-clients into the financing as well. The problem, as set out by CIRO, is that the firm refused permission. The chief compliance officer told him that only clients would be allowed to participate.

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