CIRO flags undisclosed borrowing as a core conflict risk
Borrowing money from clients has cost an Edmonton dealing representative $17,500 and his place in the industry’s good graces.
According to a Settlement Agreement accepted on December 5 by a hearing panel of the Canadian Investment Regulatory Organization (CIRO), former CIBC Securities Inc. dealing representative Ankit Pravinkumar Thakkar admitted he failed to identify, report, and address conflicts of interest.
He did not act in the best interests of his clients when he borrowed funds from them.
As set out in the Settlement Agreement, Thakkar twice obtained personal loans from a married couple who were clients of both CIBC Securities Inc. and its affiliated bank: $3,850 on December 6, 2021, repaid by December 8, 2021, and $10,000 on October 16, 2023, repaid by November 27, 2023.
The loans were informal — not documented in writing, with no set terms for repayment, duration, or interest — and he did not disclose them to the dealer.
CIRO stated in the Settlement Agreement that these loans created “material conflicts of interest” that Thakkar did not identify, report to the Dealer Member, or otherwise address in the best interests of the client, contrary to MFDA Rule 2.1.4(2) and Mutual Fund Dealer Rule 2.1.5.
Thakkar agreed that he will, in future, comply with Mutual Fund Dealer Rules 2.1.4(2) and 2.1.5.
Under the terms of settlement, Thakkar agreed to pay a fine of $15,000 under Mutual Fund Dealer Rule 7.4.1(b), plus $2,500 in costs under Mutual Fund Dealer Rule 7.4.2.
The Settlement Agreement notes that by resolving the matter this way, he spared CIRO the time and expense of a contested disciplinary hearing.
According to the Settlement Agreement, Thakkar had no prior MFDA or CIRO disciplinary history. The clients did not complain or report financial loss arising from the loans.
CIRO recorded that Thakkar expressed remorse and, following the dealer’s investigation, received additional training on the firm’s Code of Conduct and policies and procedures on personal financial dealings and conflicts of interest, which prohibit borrowing from clients.
Thakkar conducted business in the Edmonton, Alberta area throughout the relevant period and was registered as a dealing representative with CIBC Securities Inc. during several intervals between 2014 and 2024, while also working for the dealer’s retail banking affiliate.
He resigned from both the dealer and the bank on January 24, 2024, for reasons the Settlement Agreement describes as unrelated to the misconduct.
Thakkar is currently not registered in the securities industry in any capacity.
