Kelowna investment manager Kilburn Ogilvie Waymann fined $55K

Photo: M. B. M., Unsplash

The British Columbia Securities Commission has ordered a Kelowna portfolio manager to pay a fine for the second time in less than a decade.

Kilburn Ogilvie Waymann Investment Management Ltd. has paid $55,700 to the commission for inadequate controls and supervision. Specifically, the company was fined for not managing business-associated risks and not providing reasonable assurance that it complied with securities legislation.

During a compliance field examination in 2019, BCSC staff found that the firm:

• did not maintain records capable of generating certain account activity reports
• made unsubstantiated marketing claims on its website about the benefits of investing through a portfolio manager
• failed to ensure it was registered in each province where it had clients
• paid client management fees it earned to an unregistered holding company
• inaccurately calculated its excess working capital, and
• delivered deficient audited financial statements and a deficient auditor’s opinion to the BCSC as part of its required filings.

Kilburn Ogilvie Waymann was also ordered to pay $12,000 in July 2012 after admitting it failed to establish and maintain an adequate compliance system, and failed to maintain a minimum level of regulatory capital.

BCSC said there is no evidence that any clients were harmed due to the company’s deficiencies.