Mr. Gordon Feil - March 6, 2014

Mr. Gordon Feil - March 6, 2014

Disciplinary Summary


March 6, 2014

Complaint

The Association received three separate complaints concerning now former member Mr. Gordon Feil.  The complainants, some former clients, alleged Mr. Feil offered investment advice with respect to three Canadian companies; offered securities for sale without proper compliance with BC Securities Commission regulations; and failed to inform the clients of potential income tax risks. 

Decision

The Discipline Committee found Mr. Feil was not in breach of the Code of Ethical Principles and Rules of Conduct in effect from October 2, 1999 as follows:

5th Ethical Principle – Practice of the Profession; Rules R102 – Unlawful Activity; and R107.1 - Professional Practice other than Public Accounting due to insufficient evidence.

The Discipline Committee found, and the Appeals Committee confirmed, Mr. Feil was in breach of the Code of Ethical Principles and Rules of Conduct in effect from October 2, 1999 as follows:

1st Ethical Principle – Responsibilities to Society; 2nd Ethical Principle – Trust and Duties; 3rd Ethical Principle – Due Care and Professional Judgment; 4th Ethical Principle – Deceptive Information; 6th Ethical Principles – Responsibilities to the Profession; Rules R101 – Discredit; R305 – Sufficient Information; R402 – Association with Financial and Other Information; and R606 – Detrimental Actions because:

  • As a Member of CGA-BC, Mr. Feil was required to adhere to the Accountants (Certified General) Act, the Bylaws and the Code of Ethical Principles and Rules of Conduct of the Association; 
  • He provided, as per the Consent to Judgment, negligent tax planning advice relating to the acquisition of non-qualified investments and the share valuation of those companies at issue; 
  • He failed to provide evidence to support the valuation of the shares of the three companies at issue; 
  • He failed to provide evidence to support the determination that the shares of the three companies were a “qualified investment” as defined in subsection 146(1), Regulation 4900(6)(a), and Regulation 4900(12) of the Income Tax Act; 
  • Canada Revenue Agency determined the shares purchased by the complainants were not a “qualified investment” as defined in subsection 146(1) and Regulation 4900(6)(a), Regulation 4900(12) of the Income Tax Act, resulting in penalties and interest charges; 
  • Mr. Feil failed to provide engagement letters for services provided to the three companies at issue with respect to the valuation of the shares of the company and/or the determination that the shares of the company qualified for an eligible investment in a RRSP or RRIF; and 
  • He disregarded required standards and proper record keeping, and his actions resulted in an adverse finding in a BC Supreme Court case which is of public record. 

Discipline Order by the Appeals Committee

  • Suspended for two (2) years from the date of the decision; 
  • Fined $10,000; 
  • Required to pay full costs of the Discipline Panel hearing in the amount of $8,211; 
  • Required to pay full costs of the Appeals hearing in the amount of $2,623.70; 
  • Required to improve conduct and competence by having any and all valuations or market opinions, performed or prepared by Mr. Feil, reviewed by a CGA-BC approved mentor at his cost, for a period of two (2) years from the date of this decision.  

Consequential Order

As the Appeals Committee Order was not complied with, Mr. Feil is expelled from membership.