William George MacKay, a former securities advisor from Winnipeg - who had been previously fined for insurance misconduct – has been fined $5,000 and prohibited from working in certain roles at securities companies where he would oversee investment funds. The decision has been handed down by the Manitoba Securities Commission due to his acting against the public interest in his capacity as an advisor at Advantage Wealth Systems Inc.
In 2016, MacKay was fined $10,000 plus $2,000 in costs for making false or misleading statements, misrepresentation, incompetence, and selling a client a product not suited to their needs.
The Life Insurance Council of Manitoba found that the client had bought a life insurance policy with a planned annual premium of $250,000, involving borrowing money to pay for it. However, the policy as described by MacKay "did not exist," and the "product was half-baked — or not fully formed" and "should not have been recommended, pursued or settled," according to the decision.
The next year, MacKay was ordered to pay $21,000 in fines and investigation costs by the Life Insurance Council of Manitoba.
The council found that MacKay breached Manitoba's Insurance Act in an instance of incompetence, where a client complained about his handling of a life insurance policy.
The client claimed that the policy was meant to be issued in their name, rather than their corporation's name, as it could have created significant income tax benefits.
MacKay denied the allegations at the time.
MacKay offered advice and received approximately $300,000 in investments in securities in three separate entities from his clients starting in 2008, according to the panel's April 21 ruling. The commission's decision stated that at no point during that period was he registered under The Securities Act to conduct that work. The report noted that some of that money was not returned, but two clients received it back through civil court proceedings.
The panel's decision emphasized the importance of investor protection and the integrity of capital markets, stating, "Trading without the required registration undermines investor protection and the integrity of the capital markets."
In addition to the prohibition on providing investment advice, MacKay will also have to pay $5,000 to cover the costs of the investigation. According to the report, MacKay is over 70 years of age, retired, and not working at this time.
