Ken Thom appears in this 2021 photo.
Image Credit: FACEBOOK: Ken Thom
March 30, 2025 - 6:00 AM
A Kelowna financial advisor who misled his clients and made $70,000 in commission while they lost $150,000 has been fined $25,000.
According to a March 13 Insurance Council of BC decision, veteran financial planner Kenneth David Thom, who ran Thom & Associates Financial Planners, also told the couple, who had ongoing health issues including cancer, to cancel a longstanding life insurance policy saying it had only been sold to them so the agent could make a commission.
When the couple realized they shouldn't have cancelled their life insurance policy, which they'd had for more than 20 years, the company said it was too late.
The couple complained in 2022, and the regulator began an investigation into Thom's practices.
In the decision, the Insurance Council of BC said Thom's conduct was an "ongoing problem" and not an isolated event and he had a flagrant disregard for the rules.
The regulator called his behaviour "aggravating" with no mitigating factors.
Thom, who had been licenced since 1993, opened multiple investments for the unnamed couple who said they were never given a proper explanation as to what they were.
The decision says Thom made $70,756 in commission selling various products to the couple.
However, the regulator found he didn't explain the fees charged to access their money and the investments weren't discussed with his clients.
Once the couple were aware of the fees charged to access their savings they sold personal property for $168,000 to pay their taxes and other expenses.
The decision says he promised the couple returns of seven or eight per cent without touching their capital.
A market-based consultant calculated the couple's loss at $151,101 plus interest in 2022 and recommended Thom compensate them for the loss.
Although he knew his client had recently had cancer and their partner suffered from osteoarthritis, rheumatoid arthritis and hypertension he told them to cancel a decades-old life insurance policy.
Once they'd cancelled to renew the policy the couple would have to prove they were insurable.
Ultimately, the couple accepted a settlement offer from the insurance company following complaints and an investigation.
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In 2022, an investigation into Thom's sales practices by an insurance company rated him as "inadequate."
It highlighted that he mainly sold products with deferred sales charges, which has since been banned in Canada. The deferred sales charge investments paid an up front commission which penalized investors if they want to withdraw their money early.
"It was troubling to (the Insurance) Council that (Thom) had no documentation to support any discussions of the fees, especially the DSC fees associated with the products. Council concluded that the (Thom’s) failure to discuss the advantages and disadvantages of various products as well as the different types of fee options was misleading, or at least a misrepresentation of the products available," the regulator said.
The regulator also found that Thom failed to complete basic insurance forms writing "TBD" as the beneficiary in a life insurance policy.
"Had something happened to (the client) after the policy was issued, there would be no named beneficiary to the policy," the regulator said.
The BC Insurance Council also found he promised higher rates of return than was reasonable.
Through separate insurance, the couple involved did get their money back.
The decision said Thom stopped responding to the regulator's investigation and let his licence expire in August 2023.
The regulator said his actions had caused a degree of harm and fined him $25,000 plus $2,875 costs.
If he wants his licence back he'll have to complete various courses and pay the fine.
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