AGREED FACTS. Introduction
AGREED FACTS. 7. Since 1998, the Respondent has been registered in Ontario as a mutual fund salesperson (now known as a Dealing Representative).
8. Since 2012, the Respondent has been registered with Xxxxxxxxxx Financial Security Investment Inc. (“Desjardins”), a Member of the MFDA.
9. At all material times, the Respondent conducted business in the Scarborough, Ontario area.
10. At all material times, client IS was a client of Desjardins whose account was serviced by the Respondent.
11. On or about July 9, 2015, the Respondent submitted a letter of direction in respect of client IS’s account to Desjardins for processing that had been signed by client IS in order to process an internal transfer of funds (the “July 9 LOD”).
12. During its review of the July 9 LOD, Desjardins identified that the Respondent had failed to complete a section of the form that contained fee disclosure information. Desjardins asked the Respondent to properly complete a new letter of direction, including the fee disclosure information, and have client IS sign the new form.
13. In response to Desjardins’ request, the Respondent did not meet with client IS to complete the new form, but instead, photocopied the signature page of the July 9 LOD and completed the fee disclosure information section on this page prior to re-using the signature page by submitting it to Desjardins on or about August 24, 2015.
14. On or about February 24, 2015, the Respondent altered information on a letter of direction without having the client initial the alteration. Pre-Signed Account Forms
15. At all material times, Desjardins’ policies and procedures prohibited its Approved Persons, including the Respondent, from obtaining, possessing, and using pre-signed account forms.
16. In or around July 2015, the Respondent obtained and possessed 4 pre-signed account forms in respect of 1 client.
17. The pre-signed account forms consisted of letters of direction and know-your-client forms.
18. On or about August 24, 2015, in response to its supervisory inquiry in respect of the July 9 LOD, Desjardins identified that the Respondent had re-used client IS’s signature on the letter of direction the Respondent submitted on or about August 24, 2015.
19. As part of its investigation, Desjardins reviewed all client files serviced by the Respondent and identified the account forms that are the subject of this Settlement Agreement.
20. On November 11, 2015, Desjardins sent letters to all clients serviced by the Respondent in order to dete...
AGREED FACTS. 6. The Respondent was registered in Ontario as a mutual fund salesperson since 1996. The Respondent has no prior disciplinary history with the MFDA.
7. Since April 30, 2004, the Respondent was registered in Ontario as a mutual fund salesperson (now known as a dealing representative) with Worldsource Financial Management Inc. (“Worldsource”), a Member of the MFDA.
8. On August 31, 2017 the Respondent resigned from Worldsource and since the resignation, has not been registered in the securities industry in any capacity.
9. At all material times, the Respondent was also licensed to sell life insurance and accident and sickness insurance.
10. At all material times, the Respondent conducted business in Ancaster, Ontario/
A. Failure To Meet With Client
11. XX was registered as a mutual fund salesperson until July 11, 2003. JM has not been registered in the securities industry in any capacity since that date.
12. In about May 2011, XX contacted the Respondent to act as an advisor for some of JM’s former insurance clients, including client MW, as JM had lost his insurance license. In 2011, client MW became a client of the Respondent, she was around 68 years old. Client MW had previously been a client of the Respondent in around 2008.
13. In or around May 2011, the Respondent opened a Registered Retirement Savings Plan account (the “RRSP Account”) for client MW with Worldsource. Client MW transferred her investments to the RRSP Account in kind.
14. The Respondent did not meet with, or receive instructions from, client MW to open the RRSP Account. The Respondent received all of the completed account opening documentation from JM and submitted the account opening documentation to Worldsource for processing. Worldsource was not aware that the Respondent had not met with, or received instructions from, client MW.
15. In October 2012, client MW transferred the RRSP Account to another Member. From the time the RRSP Account was opened until it was transferred, the Respondent failed to contact client MW to service the RRSP Account. There were no transactions, including withdrawals, redemptions or any further activity in the RRSP Account during this time.
16. The Respondent did not meet or speak with client MW until November 2012, when client MW contacted the Respondent to express concern with respect to her dealings with XX.
17. On October 29, 2014, client MW and a related corporate entity commenced a legal proceeding in the Ontario Superior Court of Justice against the Re...
AGREED FACTS. Registration History
7. Between April 29, 2014 and August 30, 2018, the Respondent was registered in British Columbia as a dealing representative with Sun Life Financial Services (Canada) Inc. (the “Member”), a Member of the MFDA.
8. On August 30, 2018, the Member terminated the Respondent’s registration and she is no longer in the securities industry in any capacity.
9. At all material times, the Respondent carried on business in the Maple Ridge, British Columbia area.
10. Between March 2015 and June 27, 2017, the Respondent altered 15 account forms in respect of 9 clients by altering information on the account forms without having the clients initial the alterations.
11. The Respondent altered the account forms by handwriting changes without the client initialing the documents to show the alteration was approved.
12. The altered account forms included new account application forms, transfer authorization forms, Know-Your-Client (“KYC”) update forms, direction for payment to RESP forms and Education Savings Grant forms.
13. The alterations the Respondent made to the account forms included alterations to fund codes, KYC information, client information and withdrawal amounts.
14. At all material times, the Member’s policies and procedures prohibited its Approved Persons from using pre-signed account forms.
15. Between April 29, 2014 and February 20, 2018, the Respondent obtained, possessed and in some instances used to process transactions, 13 pre-signed account forms in relation to 8 clients.
16. The pre-signed account forms included, new account application forms, KYC update forms, consents for electronic messages, transfer authorization form, pre-authorized chequing forms, and contact form and Canada Education Saving Grant forms.
17. On June 4, 2018, the Member detected the pre-signed and altered forms that are the subject of this Settlement Agreement during a compliance review of all of the Respondent’s files.
18. On July 11, 2018, the Member placed the Respondent on strict supervision.
19. On August 30, 2018, the Member terminated the Respondent’s registration.
20. On October 16, 2018, the Member sent letters to all of the clients serviced by the Respondent enclosing the clients’ portfolio statements and asked them to review the transactions to confirm the transactions were authorized and to advise whether they had any concerns. No clients responded with any concerns to the Member.
21. The Respondent has not been the subject of previous MFDA disciplina...
AGREED FACTS. 1.1 Employer has the right to use certain software with related documentation (the "DPI Software Package") from DPI/TFS, Inc. (hereinafter referred to as "DPI"). The Software Package contains confidential information and trade secrets belonging to DPI.
AGREED FACTS. HCC and Participant have heretofore entered into an HCC Participant Agreement dated effective March 31, 1995 (hereinafter called the "Participant Agreement").
AGREED FACTS. HCC and Participant have heretofore entered into an HCC Participant Agreement dated effective ________________ (hereinafter called the "Participant Agreement").
AGREED FACTS. Registration History
AGREED FACTS. Registration History
7. From July 12, 2007 to September 4, 2007, and since April 11, 2011, the Respondent has been registered in the securities industry.
8. Since April 11, 2011, the Respondent has been registered in British Columbia2 as a dealing representative with Sun Life Financial Investment Services (Canada) Inc. (the “Dealer Member”), a Dealer Member of the Corporation (formerly a Member of the MFDA).
9. At all material times, the Respondent conducted business in the Golden, British Columbia area.
10. At all material times, the Dealer Member’s policies and procedures provided:
AGREED FACTS. 6. The Respondent has been registered in New Brunswick as a mutual fund salesperson with Investia Financial Services Inc. (“Investia”) since September 5, 2003.
7. Prior to his registration with Investia, the Respondent was registered in New Brunswick as a mutual fund salesperson with Cartier Partners Financial Services Inc. from December 2002 to June 2003.
8. Investia became a Member of the MFDA on June 7, 2002.
9. The Respondent is co-owner (along with 3 other individuals) of a fishing lodge called The Ledges Fishing Corp. (“The Ledges”). The Ledges is a company incorporated pursuant to the laws of New Brunswick.
10. On April 3, 2006, the Respondent became a Director of The Ledges.
11. On May 8, 2006, the Respondent completed and submitted Investia’s “Annual Review of Professional Activities” form. The Respondent did not disclose his status as co-owner and Director of The Ledges on his form.
12. Shortly thereafter, The Ledges offered for sale 18 preferred shares priced at $150,000 CDN per share. Ownership of a preferred share entitled the shareholder to specified fishing rights at The Ledges.
13. Between February 2007 and August 2007, The Ledges sold 13 of the 18 preferred shares. The Respondent purchased one of the preferred shares and the other twelve were purchased by members of the public. None of the investors was a client of Investia. A total of $1,950,000 was raised through the sale of the preferred shares. The remaining five preferred shares have yet to be sold.
14. The Respondent, in his role as co-owner and Director of the Ledges, signed at least 8 of the Buy-Sell Agreements completed by investors on behalf of The Ledges.
15. The preferred shares of The Ledges were not an investment product known to or approved for sale by Investia.
16. The preferred shares were offered for sale pursuant to exemptions from the prospectus and registration requirements of the Securities Act (New Brunswick) and, as such, the distribution of the preferred shares was required to be reported by The Ledges to the New Brunswick Securities Commission (“NBSC”). The Respondent, on behalf of The Ledges and in his capacity as co-owner and Director, signed the Exempt Distribution Form (Form 45-106F1) required to be filed by the Ledges with the NBSC in respect of the distribution of the preferred shares.
17. Upon receipt of the Form 45-106F1 filed by The Ledges, NBSC Staff advised Investia by letter dated May 28, 2007 of the Respondent’s involvement in the distribution of the ...
