A former Vancouver Island portfolio manager has been fined $60,000 by the B.C. Securities Commission (BCSC) for “steering his clients into an unsuitable investment.”
The BCSC says Qualicum Beach man Todd David MacSween invested $4.3 million of his clients’ money into investments that were “too risky for each of them and unsuitable for their needs, objectives and personal and financial circumstances.”
The securities commission determined MacSween made the risky investments when it conducted a compliance review for Fieldhouse Capital Management Inc. in August 2021, where MacSween was a portfolio manager and manager of one of the firm’s investment funds, the Class M Global Macro Core Fund.
“By placing his clients in Class M, MacSween failed to maintain current and accurate ‘Know Your Client’ information about them, and failed to ensure the fund was suitable for them,” the security commission said in a release Thursday.
The BCSC says MacSween has agreed to pay a $60,000 fine and has been working with the BCSC and clients to “address and mitigate harm.”
“MacSween made early admissions as to this misconduct, thus avoiding the need for further enforcement proceedings, including a panel hearing,” the security commission said.
In addition to the $60,000 fine, MacSween has been banned from becoming or acting as a registrant or promoter for eight years, and from “engaging in promotional activities by – or on behalf of – an issuer, security holder or party to a derivative, or another person that would benefit from such activity” for the same amount of time, according to the BCSC.
The BCSC continues to look into Victoria mortgage company Shop Your Own Mortgage and its former owner, Greg Martel.