CIRO Sanctions Yujie (Jared) Liu and BMO Nesbitt Burns Inc.

24-0137
Type:
Decision Notice
Division
Investment Dealer

Contact

Toronto (Ontario), April 5, 2024 – On March 28, 2024, a panel of the Canadian Investment Regulatory Organization (CIRO) held a hearing pursuant to the Investment Dealer and Partially Consolidated Rules and accepted a settlement agreement, with sanctions, between Enforcement Staff and Yujie (Jared) Liu and BMO Nesbitt Burns Inc. (BMO NBI).

Yujie (Jared) Liu admitted that he failed to use due diligence to determine the suitability of an investment strategy used in certain client accounts.

BMO NBI admitted to failing to implement a system of supervision and control in respect of the trading activity in certain client accounts, particularly with respect to the suitability obligations owing by it and its Registered Representative and in respect of the supervision of the client accounts.

Pursuant to the settlement agreement, Yujie (Jared) Liu agreed to the following sanctions:

  1. a fine of $80,000,
  2. disgorgement of fees and commissions in the amount of $63,258, and
  3. a successful completion of the Conduct and Practices Handbook course before applying for registration and approval with CIRO.

Yujie (Jared) Liu also agreed to pay costs in the amount of $5,000.

BMO NBI agreed to the following sanctions:

  1. a fine of $1,500,000, and
  2. disgorgement of fees and commissions in the amount of $146,876.

BMO NBI agreed to pay costs in the amount of $50,000.

The Settlement Agreement is available at:

Yujie (Jared) Liu and BMO Nesbitt Burns Inc. – Settlement Agreement

The hearing panel’s decision will be made available at www.ciro.ca.

BMO NBI is a CIRO-regulated Dealer Member. Yujie (Jared) Liu was a Registered Representative with BMO NBI from September 2006 until approximately July 2021. He is currently employed with BMO NB in a non-registered capacity.

All information about disciplinary proceedings relating to current and former member firms and individual registrants under the Investment Dealer and Partially Consolidated Rules (for investment dealers), the Mutual Fund Dealer Rules (for mutual fund dealers) and the Universal Market Integrity Rules (UMIR) is available on CIRO's website.

Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by CIRO-regulated investment firms is available free of charge through the AdvisorReport service. Information on how to make dealer, advisor or marketplace-related complaints is available by calling 1-877-442-4322.

CIRO investigates possible misconduct by its member firms and individual registrants. It can bring disciplinary proceedings which may result in sanctions including fines, suspensions, permanent bars, expulsion from membership, or termination of rights and privileges for individuals and firms.

The Canadian Investment Regulatory Organization (CIRO) is the national self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada’s debt and equity marketplaces. CIRO is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians’ trust in financial regulation and the people managing their investments. For more information, visit www.ciro.ca.

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24-0137
Type:
Decision Notice
Division
Investment Dealer

Contact

Other Notices associated with this Enforcement Proceeding:

Go to the summary page for this Enforcement Proceeding
Go to the summary page for this Enforcement Proceeding