FPSC Report on Disciplinary Action
Effective January 1, 2006, it is FPSC's policy to publicly report on disciplinary actions taken by FPSC against individuals' rights to use the CFP marks.
In accordance with the Disciplinary Rules and Procedures, all complaints made against CFP professionals are investigated by the Director, Ethics and where appropriate, referred to the Ethics and Practice Committee for a formal disciplinary hearing. The objectives of this process include the protection of the public and the protection of the reputation of the profession.
In each case, a Hearing Panel comprised of a member of the Ethics and Practice Committee and two additional volunteers from the CFP professional community is formed to hear the case and to make a determination of whether or not there has been a breach of the CFP Code of Ethics. Where there is a finding of a breach of the Code, a range of sanctions can be imposed upon the CFP professional up to and including the permanent revocation of the right to use the CFP marks.
Permanent Revocations of the right to use CFP marks:
Brick, Robert (Woodstock, ON)
Admonishments:
Cloth, Jason (Richmond Hill, ON)
Klimkowski, Ludwik (Ottawa, ON)
McKay, Iris (Winnipeg, MB)
Stokman, Andrew (London, ON)
Totrov, Serguei (Toronto, ON)
Brick, Robert (Woodstock, Ontario)
In June 2006, a Hearing Panel of the Ethics and Practice Committee issued a decision revoking Mr. Brick's right to use the CFP marks. Mr. Brick was found to be in breach of Rules 101 and 202 of the CFP Code of Ethics when he was engaged to file tax returns for his client and failed to do so. Mr. Brick was also found to have misled his client in respect of his assurances that the tax returns were filed when they in fact had not been. Further, the Hearing Panel found that Mr. Brick was in breach of Rule 704 of the Code when he failed to provide notification to his client of ceasing to act in respect of a mortgage transaction. Mr. Brick failed to respond to the Director, Ethics in the course of the investigation and failed to appear at the hearing. Mr. Brick's right to use the CFP marks has been permanently revoked.
Cloth, Jason (Richmond Hill, Ontario)
In May 2006, a Hearing Panel of the Ethics and Practice Committee issued Mr. Cloth a Letter of Admonishment, in accordance with a settlement agreement reached with FPSC. Mr. Cloth admitted that he acted in breach of Rule 607 of the CFP Code of Ethics in failing to report a lawsuit made against him in four separate license renewal periods, thereby failing to comply with all post-certification requirements established by FPSC. Mr. Cloth retains the right to use the CFP marks.
Klimkowski, Ludwik (Ottawa, Ontario)
In May 2006, a Hearing Panel of the Ethics and Practice Committee issued Mr. Klimkowski a Letter of Admonishment. In addition, Mr. Klimkowski was required to complete a program of remedial studies within a specific time frame or be subject to a suspension of his license for failing to do so. The Hearing Panel found that Mr. Klimkowski acted in breach of Rules 606(b) and 607 of the CFP Code of Ethics when he took his client's password with consent and performed online trading in the client's securities account. The Hearing Panel also found that Mr. Klimkowski recommended and implemented an aggressive investment portfolio that could not be reconciled with the Know Your Client information on file, constituting a breach of Rule 702 of the Code. Mr. Klimkowski retains the right to use the CFP marks.
McKay, Iris (Winnipeg, Manitoba)
In May 2006, a Hearing Panel of the Ethics and Practice Committee issued Ms. McKay a Letter of Admonishment, in accordance with a settlement agreement reached with FPSC. Ms. McKay admitted that she acted in breach of Rule 702 of the CFP Code of Ethics when she recommended and implemented a leveraged investment that was not suitable for her client. Ms McKay also admitted a breach of Rule 303 when she intervened in the personal affairs of the client by taking ownership of the investment and servicing the client's debt personally. Ms. McKay was disciplined by the Manitoba Securities Commission and made full disclosure to FPSC. Ms. McKay retains the right to use the CFP marks.
Stokman, Andrew (London, Ontario)
In March 2006, a Hearing Panel of the Ethics and Practice Committee issued Mr. Stokman a Letter of Admonishment, in accordance with a settlement agreement reached with FPSC. Mr. Stokman admitted that he acted in breach of Rule 201 of the CFP Code of Ethics in failing to exercise reasonable and prudent judgment by not conducting a due diligence review of an investment prior to recommending it to his clients. The investment was later determined to be of a fraudulent nature. Mr. Stokman also admitted that the resultant failure to act in the best interests of his clients was also a breach of Rule 202 of the Code. Finally, Mr. Stokman admitted that in placing the investments in question, he was acting beyond the authority of his dealer relationship and contrary to applicable laws, rules and regulations, resulting in disciplinary action being taken by the MFDA and also constituting a breach of Rule 607 of the Code. Mr. Stokman retains the right to use the CFP marks.
Totrov, Serguei (Toronto, Ontario)
In June 2006, a Hearing Panel of the Ethics and Practice Committee issued a decision requiring Mr. Totrov to complete a program of remedial studies within a specific time frame or be subject to a suspension of his license for failing to do so. The Hearing Panel found that Mr. Totrov did not exercise reasonable and prudent professional judgment, in breach of Rule 201 of the CFP Code of Ethics, did not to act in his clients' best interests, in breach of Rule 202 of the Code, and did not make and implement only those recommendations which were suitable for his clients, in breach of Rule 702 of the Code. Mr. Totrov had placed substantially all of his clients' retirement savings into a speculative investment without having taken sufficient time to get to know the clients and without taking sufficient care in selecting the investment. The Hearing Panel specifically decided that Mr. Totrov must complete the Canadian Securities Course. Mr. Totrov retains the right to use the CFP marks.
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