Investment Adviser Reprimanded

The Nova Scotia Securities Commission has settled a case with J. Arnold Johnson, who admitted to failing to keep adequate records and unintentionally entering an unauthorized trade in a client account.

In June 2008, Mr. Johnson, a registered dealing representative with Jennings Capital, placed an order in a client account. The order was based on oral instructions received months before, but not placed until sufficient funds had accumulated in the client's account. The client file information was out of date.

By failing to maintain a written record of the order, and by failing to update the client's Know Your Client documentation in writing, Mr. Johnson failed to maintain an adequate record. By failing to reconfirm the previous instruction for the order, he unintentionally placed an unauthorized trade in the client account.

Under the order and settlement agreement, Mr. Johnson will be reprimanded. He will pay an administrative penalty of $3,500 to the commission and $1,500 in costs connected with the investigation and proceedings.

The Nova Scotia Securities Commission is the provincial government agency responsible for regulating trading in securities in the province. To view the order and settlement agreement, visit www.gov.ns.ca/nssc/compliancenforce/enforproceedings.asp .