Former Winnipeg financial adviser faces penalties after disciplinary hearing

A former financial adviser from Winnipeg has been found guilty by a hearing panel of a number of infractions, including making unsuitable recommendations to clients.

A disciplinary hearing by the Investment Industry Regulatory Organization of Canada was held May 7-11 and released its decision on Friday.

It found Edward Peter Bodnarchuk failed to suitably know two of his clients in order to make proper decisions on their behalf, made unsuitable recommendations, engaged in discretionary trading, and failed to notify his employer of an existing, or potential, conflict of interest.

Specifically, the panel found Bodnarchuk committed the following violations:

• Between July 2008 and November 2012, he failed to use due diligence to learn and remain informed of the essential facts relative to a client.
• Between July 2008 and November 2012, he made unsuitable recommendations for the account of a client.
• Between July 2008 and November 2012, he made discretionary trades in the accounts of a client.
• Between August 2010 and April 2016, he failed to use due diligence to learn and remain informed of the essential facts relative to a client.
• Between August 2010 and April 2016, he made unsuitable recommendations for the account of a client.
• Between August 2010 and April 2016, he made discretionary trades in the accounts of a client.
• Between October 2010 and December 2012, he failed to disclose to his firm activities that fell outside the scope of his duties as a registrant that created a real or potential conflict of interest between Bodnarchuk and his clients.

The violations occurred while he was a registered representative with the Winnipeg branch of National Bank Financial Ltd. and the Winnipeg branch of PI Financial Corp.

A separate hearing will be held to determine the penalty to be imposed on Bodnarchuk, who is no longer a registrant with an IIROC-regulated firm.