Quick Facts
Overview
Jeremy Earl Clark, a former dealing representative in Alberta, entered into a settlement agreement with the Canadian Investment Regulatory Organization (CIRO) on July 24, 2025, resulting in a $80,000 fine, a 12-month prohibition from conducting securities-related business, and $5,000 in costs.
The action stemmed from Clark's undisclosed personal financial dealings with clients, including soliciting investments and loans for his company CH Financial Ltd., and providing false or misleading statements to his Dealer Member, in violation of Mutual Fund Dealer Rules.
Details of the Case
Jeremy Earl Clark operated as a dealing representative with FundEx Investments Inc. (later amalgamated into Investia Financial Services Inc.) from October 2004 until his termination in March 2023. He owned and operated CH Financial Ltd., approved by the Dealer Member as a trade name for his mutual fund business and certain outside activities like financial planning and insurance.
Without the Dealer Member's knowledge or approval, Clark engaged in personal financial dealings with clients between January 2019 and October 2022. This included soliciting $1,642,543 from six clients to become shareholders in CH Financial for business expansion, and securing $1,500,000 in loans from another client.
Clark failed to disclose these conflicts of interest, contrary to the Dealer Member's policies prohibiting such dealings and requiring notification of potential conflicts. Additionally, he provided false information in an annual attestation and on redemption documentation. The Dealer Member discovered the conduct during an internal investigation starting in September 2022, leading to Clark's termination.
WORKED EXAMPLES
Shareholder Solicitation from Client SM
On January 22, 2019, Clark solicited $250,000 from client SM to purchase shares in CH Financial.
- This amount was part of a total $1,642,543 raised from six clients (JF, ML1, ML2, SM, PM, SMC).
- CH Financial paid dividends totaling $420,016 to these clients from April 2019 to March 2023, but no further payments since March 15, 2023.
- Impact: Represented unauthorized borrowing from a client, violating policies against personal financial dealings.
Loan from Client JS
On February 3, 2022, CH Financial borrowed $500,000 from client JS at 5% annual interest, repayable quarterly; a second loan of $1,000,000 followed on October 25, 2022, at 7% interest.
- Both loans were fully repaid by June 2023.
- The Dealer Member learned of the first loan via supporting documentation for another application in September 2022.
- Impact: Represented unauthorised borrowing from a client, violating policies against personal financial dealings.
False Annual Attestation
On March 31, 2022, Clark signed the Dealer Member's 2021 annual attestation, answering "No" to whether he was involved in personal financial dealings with clients.
- The question cited examples like borrowing from clients or business dealings.
- By this date, Clark had already solicited over $1.6 million in investments and a $500,000 loan.
- Impact: Misled the Dealer Member about ongoing conflicts, contrary to MFDA Rule 2.1.1.
Misleading Redemption Reasons for Client JF
On January 23, 2019, Clark facilitated a $500,000 redemption from client JF's account, recording the reason as "Living Expenses."
- Actual use: Funds invested in CH Financial shares.
- Part of $1.35 million in redemptions across clients with inaccurate reasons selected from a pre-existing list.
- Impact: Obscured the true purpose of funds, facilitating undisclosed business dealings.
Misleading Redemption Reasons for Client JS
On October 7 and 12, 2022, Clark facilitated two $500,000 redemptions (totaling $1,000,000) from client JS's account, recording reasons as "Cash flow and other investments."
- Actual use: Funds loaned to CH Financial.
- Client JS ceased being a Dealer Member client on November 18, 2022.
- Impact: Contributed to the Dealer Member's delayed discovery of the loans during its investigation.
Fines and Penalties
- Fine: $80,000
- Prohibition: 12 months from conducting securities-related business with any CIRO Dealer Member
- Costs: $5,000
Key Quotes
"Are you currently or have you ever been involved in personal financial dealings with your client(s) or any other conflicts of interest described in Chapter 9 of Investia’s CPPM? (Examples of personal financial dealings include but not limited to borrowing from or lending to clients, involvement in private investment schemes or business dealings with clients)." (From the Dealer Member's 2021 annual attestation, to which Clark falsely answered "No").
"The Respondent engaged in personal financial dealings with clients of the Dealer Member, which gave rise to conflicts of interest that the Respondent failed to disclose to the Dealer Member or otherwise ensure was addressed by the exercise of responsible business judgment influenced only by the best interests of the clients, contrary to MFDA Rules 2.1.4 and 2.1.5." (From Part IV – Contraventions of the Settlement Agreement).
"The Dealer Member’s policies and procedures (“PPM”) prohibited its Approved Persons from engaging in personal financial dealings with clients, borrowing from clients, and required its Approved Persons notify it when a potential conflict of interest arises." (From the Agreed Facts section of the Settlement Agreement).
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