AGREED FACTS Registration History.
7. Since April 2008, the Respondent has been registered in Ontario as a dealing representative with Sun Life Investment Services (Canada) Inc. (the “Member”), a Member of the MFDA.
8. At all material times, the Respondent conducted business in the London, Ontario area.
9. Beginning in May 2017, the Member’s policies and procedures prohibited Approved Persons from altering client account forms without obtaining client initials.
10. Between January 2015 and February 2019, the Respondent altered and, in some instances, used to process transactions, 24 account forms in respect of 22 clients by altering information on the account forms without having the client initial the alterations.
11. The altered account forms included: 15 Know-Your Client (“KYC”) Forms, 3 Pre- Authorized Contribution (“PAC”) Forms, 2 Tax Free Savings Account (“TFSA”) Application Forms, 1 Registered Education Savings Plan (“RESP”) Appointment of Beneficiary Form, 1 Order Ticket, 1 Transfer Authorization and 1 Limited Trade Authorization.
12. The alterations made by the Respondent consist of changes to: client investment knowledge, client investment objectives, client risk tolerance, investment time horizon, client income, client net worth, account numbers, PAC instructions, and account beneficiary information.
13. At all material times, the Member’s policies and procedures prohibited the use of pre- signed forms.
14. Between November 2014 and February 2017, the Respondent obtained, possessed and, in some instances, used to process transactions, 3 pre-signed account forms in respect of 4 clients.
15. The pre-signed account forms included: 1 Transfer Authorization, 1 PAC Form and 1 Canada Revenue Agency (“CRA”) Direct Transfer Form.
16. In April 2019, the Member conducted an audit of a sample of the Respondent’s client files and identified 5 deficient account forms.
17. In May 2019, the Member conducted a full review of the client files maintained by the Respondent and discovered the remaining account forms that are the subject of this Settlement Agreement.
18. Between May 2019 and May 2020, the Member placed the Respondent under close supervision.
19. In June 2019, the Member sent a letter to all clients whose accounts were affected by the Respondent’s conduct and indicated that the Member had identified instances where forms were used in the client accounts which may not have been complete when they were signed by the client. The Member attached copies of client account statements for th...
AGREED FACTS Registration History. 7. Commencing in 2014, the Respondent was registered in British Columbia in the securities industry.
8. From February 27, 2019 to November 17, 2020, the Respondent was registered in British Columbia as a dealing representative with TD Investment Services Inc. (the “Member”), a Member of the MFDA.
9. On November 17, 2020, the Member terminated the Respondent as a result of the conduct described herein, and he is not currently registered in the securities industry in any capacity.
10. At all material times, the Respondent conducted business in the Chilliwack, British Columbia area. Signing a Client’s Signature
11. At all material times, the Member’s policies and procedures prohibited the falsification of any account information, record or documentation in any way, including signing or initialing documents on behalf of a client.
12. From October 20, 2020 and October 22, 2020, the Respondent signed a client’s signature on 4 Transaction and Account Maintenance Forms and submitted the forms to the Member for processing.
13. On October 9, 2020, the Respondent submitted 3 Transaction and Account Maintenance forms to the Member for processing. The Respondent’s branch manager discovered inconsistencies in the information recorded on the forms and asked the Respondent to clarify the inconsistencies with the client.
14. From October 20 to October 22, 2020, the Respondent then submitted the 4 new Transaction and Account Maintenance forms described above. The branch manager reviewed the signatures on these forms and noted that the client signatures were different than the client signatures found on the Transaction and Account Maintenance forms that were previously submitted by the Respondent described in paragraph 13. The branch manager contacted the client who confirmed that that he did not sign the account forms.
15. The Member confirmed that the transactions were authorized, and the client re-signed the account forms in question.
16. The Member completed a review of the Respondent’s trading activity from October 2019 to October 2020, and no additional instances where the Respondent signed client signatures were identified.
17. There is no evidence that the Respondent received any financial benefit from the conduct set out above beyond any commissions and fees to which he would ordinarily have been entitled had the transactions been carried out in the proper manner.
18. There is no evidence of client loss or complaint. The transactions processed by the Respondent us...
AGREED FACTS Registration History. 7. Since 1994, the Respondent has been registered as a mutual fund salesperson (now known as a Dealing Representative).
8. Since January 6, 2015, the Respondent has been registered in Ontario and Alberta as a mutual fund salesperson with FundEX Investments Inc., a Member of the MFDA (“FundEX”).
9. At all material times, the Respondent conducted business in the Thunder Bay, Ontario area.
AGREED FACTS Registration History. 7. Since 1996, the Respondent has been registered in Ontario as a mutual fund salesperson (now known as a Dealing Representative).
8. Since 2001, the Respondent has been registered with Global Maxfin Investments Inc. (“Global”), a Member of the MFDA.
9. At all material times, the Respondent conducted business in the Mississauga, Ontario area.
AGREED FACTS Registration History.
1. Since June 20, 2006, the Respondent has been registered in British Columbia as a dealing representative with Global Maxfin Investments Inc.1 (the “Member”), a Member of the MFDA.
2. At all material times, the Respondent carried on business in the Namaimo, British Columbia area.
1 Between June 20, 2006 and September 1, 2011, the Respondent was registered in British Columbia with Professional Investment Services (Canada) Inc. (“PIS”). On September 1, 2011, PIS amalgamated with the Member.
3. Between January 5, 2015 and March 1, 2018, the Respondent altered 12 account forms in respect of 9 clients by altering information on the account forms without having the clients initial the alterations.
4. The Respondent used liquid correction fluid to alter the account forms without the client initialing the documents to show the alteration was approved.
5. The altered account forms included Order Entry Forms and KYC Forms.
6. The alterations the Respondent made to the account forms included alterations to spousal/beneficiary information, fund codes, fund names and amounts.
7. At all material times, the Member’s policies and procedures prohibited its Approved Persons from using pre-signed account forms.
8. Between January 25, 2011 and May 18, 2018, the Respondent obtained, possessed and used to process transactions, 58 pre-signed account forms in relation to 17 clients.
9. The pre-signed account forms included, Know-Your-Client (“KYC”) Forms, Order Entry Forms, Transfer DSC Free or Mature Units to Front End Forms.
10. On May 23, 2018, the Member detected the pre-signed forms that are the subject of this Settlement Agreement during a compliance review of all of the Respondent’s files.
11. On June 11, 2018, the Member placed the Respondent on strict supervision for a period of 6 months, issued a warning letter, and imposed a fine of $2,500 on the Respondent.
12. On September 13, 2018, the Member sent letters to all of the clients serviced by the Respondent, asking whether the Respondent had asked them to sign incomplete or blank account forms to conduct business. The Member received no responses to its letters.
13. The Respondent has not been the subject of previous MFDA disciplinary proceedings.
14. There is no evidence of client loss in this matter or that the Respondent received any financial benefit from engaging in the misconduct beyond the commissions or fees to which he would have been ordinarily entitled had the transactions in the clients’ accounts been car...
AGREED FACTS Registration History. 7. Between December 2015 and March 2016, the Respondent was registered in Ontario as a mutual fund salesperson (now known as a Dealing Representative) with BMO Investments Inc. (“BMO”), a Member of the MFDA.
8. On March 30, 2016, BMO terminated the Respondent’s registration as a result of the conduct that is the subject of this Settlement Agreement, and the Respondent is no longer registered in the securities industry in any capacity.
9. At all material times, the Respondent conducted business in the Toronto, Ontario area.
10. On February 26, 2016, the Respondent met with client IV to open a mutual fund account and subsequently submitted the relevant account forms to his branch manager for review.
11. On February 29, 2016, the branch manager reviewed the account forms, identified that the New Account Application Form (the “NAAF”) was missing, and requested that the Respondent provide him with the NAAF.
12. In response to the branch manager’s inquiry, the Respondent created a new NAAF (the “Form”) and signed client IV’s signature on the Form.
13. Within a few hours of the branch manager’s request, the Respondent submitted the Form for review and falsely advised the branch manager that the Respondent had found the missing NAAF.
14. After receiving the Form, the branch manager reviewed it and asked the Respondent whether client IV had signed the Form. The Respondent admitted that he had signed client IV’s signature on the Form.
15. On March 3, 2016, the Respondent provided BMO’s compliance department with a written statement in respect of the Form, in which he falsely advised BMO that client IV had signed the Form.
16. On March 16, 2016, during an interview with BMO, the Respondent admitted that he had signed client IV’s signature on the Form.
17. As part of its investigation, BMO reviewed a sample of the client files serviced by the Respondent and identified no further concerns.
18. On March 30, 2016, BMO terminated the Respondent’s registration.
19. There is no evidence that the Respondent received any benefit from the conduct set out above.
20. There is no evidence of client loss.
21. The Respondent has not previously been the subject of MFDA disciplinary proceedings.
22. By entering into this Settlement Agreement, the Respondent has accepted responsibility for his misconduct and has saved the MFDA the time, resources, and expenses associated with conducting a full hearing on the allegations.
AGREED FACTS Registration History. 6. The Respondent has been registered in the securities industry since 1988.
7. The Respondent has been registered as a mutual fund salesperson (now known as a Dealing Representative) for Worldsource Financial Management Inc. (“Worldsource”), a Member of the MFDA, in British Columbia since January 21, 1993 and in Ontario since January 13, 2005.
8. At all material times, the Respondent carried on business from the main branch located in Vancouver, British Columbia or a sub-branch office of Worldsource located New Westminster, British Columbia.
9. At all material times, Worldsource’s policies and procedures prohibited its Approved Persons from using blank or partially complete pre-signed account forms, including photocopies of pre-signed account forms, to conduct business.
10. In July 2006, Worldsource issued a caution letter to the Respondent for obtaining and maintaining pre-signed account forms.
11. Between March 2010 and May 2014, the Respondent obtained, maintained and used to process redemptions 10 pre-signed account forms in respect of three clients, as described in greater detail below: Client Name Account Form Date of Account Form Description of Form When Signed by Client Client KD Redemption Form Mar/16/2010 The investment instructions were completed after the client had signed the form. Redemption Form May/14/2010 The investment instructions were completed after the client had signed the form. Redemption Form Jan/19/2011 Partially completed form. Faxed signature. Redemption Form Mar/19/2011 Partially completed form. Faxed signature. Redemption Form Oct/20/2011 Partially completed form. Faxed signature, and the redemption instruction were completed after in ink. Redemption Form Feb/13/2014 Faxed signature. The redemption instruction was completed in ink. Redemption Form Mar/19/2014 Faxed signature. The redemption instruction was completed in ink. Client BK Redemption Form Dec/07/2013 The investment instructions were completed after the client had signed the form. Redemption Form Jan/06/2014 Imaged signature. Blank signed form. Client RD Redemption Form May/09/2014 Imaged signature. Blank signed form.
12. Worldsource detected the Respondent’s use of pre-signed account forms during an audit of the Respondent’s sub-branch in August 2014.
13. Worldsource subsequently conducted an audit of 25 of the client files maintained by the Respondent. Worldsource did not detect any further use of pre-signed account forms during its audit.
14. On August 20, 2014, ...
AGREED FACTS Registration History. 6. The Respondent has been registered as a mutual fund salesperson in the province of Ontario with Sterling Mutuals Inc. (“Sterling”) since June 2002.
7. Prior to working at Sterling, the Respondent was registered as a mutual fund salesperson with Fund Equity Plus Inc. from April 2001 to June 2002 and at Odyssey Capital from February 2000 to April 2001.
8. Xxxxxxxx became a Member of the MFDA on March 8, 2002.
9. On March 14, 2003, Paradigm Asset Management Inc. which subsequently changed its name to Portus Alternative Asset Management Inc. (“Portus”) was registered as an Investment Counsel and Portfolio Manager (“IC/PM”) in all Canadian jurisdictions except Quebec (and became registered in Quebec when it changed its name). Portus developed certain principal-protected investment products that were distributed to retail investors by means of referrals from various sources, including Members of the MFDA. In total, approximately $792 million was invested in Portus principal-protected investment products.
10. On February 2, 2005, the Ontario Securities Commission (“OSC”) issued orders requiring Portus and its affiliates to cease trading in securities because of apparent breaches of the Securities Act, R.S.O. 1990, c. S.5 as amended (the “OSA”). Subsequently, the OSC commenced enforcement proceedings against Portus, its affiliates and certain officers and directors of Portus. Upon application of the OSC, KPMG Inc. (“KPMG”) was appointed as the Receiver of all of the assets of Portus and related entities. The Receiver later applied for, and obtained, a bankruptcy order, among other things, adjudging Portus bankrupt. In its most recently disclosed assessment, KPMG estimated that realizations would exceed 95% of Portus Customer Claims when final distributions are made. Prior to the issuance of the cease trade orders, the Respondent was not aware of the improper conduct that gave rise to the OSC enforcement proceedings and the cease trade orders against Xxxxxx.
11. Xxxxxxxx never authorized the sale of Portus investment products by its Approved Persons and did not enter into a referral arrangement with Portus. In fact, as described below, Sterling expressly directed its Approved Persons, including the Respondent that they were not permitted to sell or refer clients to Portus investment products.
12. In approximately January 2006, mutual fund dealers and investment dealers that were registered in Ontario and referred clients to Portus (the “Ontario Dealers”), volunt...
AGREED FACTS Registration History. 7. Since November 1991, the Respondent has been registered with PFSL Investments Canada Ltd. (“PFSL”), a Member of the MFDA. Since November 2003, the Respondent has been registered as a branch manager.
8. At all material times, PFSL designated the Respondent as branch manager in his branch.
9. At all material times, the Respondent conducted business in the Vaughan, Ontario area.
AGREED FACTS Registration History. 6. The Respondent is registered as a mutual fund dealer and has been a Member of the MFDA since March 8, 2002.
7. The Respondent’s head office is located in Mississauga, Ontario.
8. IPC Securities Corporation Inc. (“IPCSC”) is an affiliate of the Respondent, operates as a securities dealer, and is regulated by the Investment Industry Regulatory Organization of Canada (“IIROC”).
9. On or about October 31, 2011, the Respondent entered into a referral arrangement with IPCSC which permitted the Respondent’s Approved Persons to refer clients to IPCSC in order for clients to purchase, sell, or otherwise transact in securities (i.e., non-mutual fund securities) that Approved Persons are not registered to trade or advise in (“Referral Arrangement”).
10. The Referral Arrangement was established by the Respondent to allow its Approved Persons to refer clients wishing to purchase non-mutual fund securities to an appropriate registrant in a formal manner in which the referral could be centralized and monitored. Under the terms of the Referral Arrangement, the Respondent’s Approved Persons were required to limit their referral-related activities to providing clients with a basic description of the services available through IPCSC and providing contact information for an IPCSC representative.
11. The Respondent’s policies and procedures prohibited its Approved Persons from providing advice, recommendations or opinions about non-mutual fund investments available through other registrants, including through the Referral Arrangement.
12. The Referral Arrangement was announced in a memorandum issued by the Respondent to its Approved Persons on October 31, 2011 that included, among other things:
(a) An announcement that the National Accounts Desk had been launched by IPCSC to facilitate handling of Approved Persons’ clients’ orders “for purchasing various exchange-traded investment products, including securities listed on major stock exchanges, which are not available to MFDA registered advisors;” and
(b) Answers to Frequently Asked Questions about the Referral Arrangement that, among other things, indicated that: referring advisors registered with the Respondent were not permitted to place orders with IPCSC on behalf of their clients; and all paperwork in the creation, maintenance of an IPCSC account or any trading instructions must be conducted between the client and the National Accounts Desk Advisor employed by IPCSC.
13. On or about February 27, 2009, prior to the Refer...
