Rep fined, banned for borrowing from client

A former mutual fund rep has been fined and permanently banned for arranging a loan from a client.

A hearing panel of the Canadian Investment Regulatory Organization (CIRO) approved a proposed settlement between CIRO enforcement staff and a former rep with Scotia Securities Inc. in British Columbia, Gaurav (Gavin) Banerjee, who admitted to violating the self-regulatory organization’s rules by borrowing from a client.

According to the settlement, Banerjee, who worked out of a bank branch, arranged a $35,000 no-interest loan from a client in mid-2024, which was to repaid by July 31, 2025. 

The loan, which he used to pay personal expenses, was not disclosed to his dealer. The arrangement was discovered when bank personnel questioned the cheque written by the client to finance the loan.

After the loan was discovered, Banerjee was suspended by his dealer, and soon after that he resigned from the firm. He has repaid approximately $3,500, the settlement noted.

In settling the case, Banerjee agreed to a permanent ban from the securities industry, and to pay $40,000 — comprised of a fine of $8,500, and $31,500 in disgorgement. He also agreed to pay costs of $5,000.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.