IIROC fines advisor $70,000 for unsuitable investment recommendations

The advisor employed a high-risk investment strategy, which ran counter to the client’s expressed objectives and parameters for risk tolerance

Blaine Albert Kunz, a registered representative with CIBC World Markets Inc. in Medicine Hat, Alta., is on the hook for paying $70,000 in fines after reaching a settlement agreement with an Investment Industry Regulatory Organization of Canada (IIROC) hearing panel for acting against a client’s interests.

Specifically, Kunz admitted to making unsuitable recommendations to a client that cost the person $463,587. Kunz opted to employ a high-risk investment strategy sometime between December 2010 and April 2013, which ran counter to the client’s expressed objectives and parameters for risk tolerance.

Before the IIROC hearing panel, Kunz admitted to violating the terms of his duty to exercise due diligence and ensure recommendations aligned with the client’s preferences.

As part of the settlement, Kunz has agreed to pay an additional $5,000 in costs.