Former Saskatoon investment advisor fined after clients lost close to $1 million

Former Saskatoon investment advisor fined after clients lost close to $1 million
Former Saskatoon investment advisor suspended after clients lose almost $1 million
Troy Robert Nagy, a former CIBC investment adviser in Saskatoon, has been fined after admitting to wrongdoing that caused clients to lose close to $1 million

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A former CIBC investment adviser in Saskatoon has been fined after admitting to wrongdoing that caused clients to lose a lot of money.

The Investment Industry Regulatory Organization of Canada said it has accepted a settlement agreement, including sanctions, with Troy Robert Nagy.

The organization says over a five-year period a couple lost $806,000, about 34 per cent of their portfolio — and another couple lost $163,000, about 40 per cent of their portfolio.

Nagy admitted he did not practise due diligence to ensure his recommendations were suitable for the two couples, including an alternative investment that he did not fully understand.

The settlement agreement says Nagy must pay a $30,000 fine and $5,000 in costs and is repaying $695,000 in compensation paid by CIBC to the two couples.

Nagy was fired in July 2016 and is no longer registered with any Investment Industry Regulatory Organization-regulated firm.

A former Saskatoon investment advisor who worked at CIBC has been suspended and fined after he admitted to wrongdoing that caused clients to suffer significant losses, according to the Investment Industry Regulatory Organization of Canada.

Over a five-year period, a couple in their 60s lost $806,000, about 34 per cent of their portfolio, and a couple in their 40s lost $163,000, about 40 per cent of their portfolio, according to a settlement agreement.

Last week an IRROC hearing panel accepted a settlement agreement, with sanctions, between IIROC staff and Troy Robert Nagy.

Nagy admitted to not practicing due diligence to ensure his recommendations were suitable for the two couples when he recommended concentrated positions as an alternative investment that he did not fully understand.

He also admitted to engaging in personal financial dealings with another client without the knowledge or consent of his dealer member.

Nagy deposited $52,200 in an outside bank account held by his client, according to the settlement agreement.

The settlement agreement says Nagy must pay a $30,000 fine and is prohibited of approval in any capacity with the IIROC for two months. He also agreed to pay $5,000 in costs.

Of the $695,000 in compensation paid by CIBC to the two couples who lost money, Nagy has repaid about $663,000 through payroll deductions and deferred compensation share forfeitures.

IIROC began investigating Nagys conduct in May 2016 when he was a registered representative at the Saskatoon branch of CIBC World Markets Inc., which is an IIROC-regulated firm. He worked there since 1999 and was fired in July 2016, according to the settlement