Advisor fined after admitting 70 form violations

Dealing rep handed $15,500 penalty after violations detected during firm's compliance review

Advisor fined after admitting 70 form violations

An advisor has been fined $13,000 by the MFDA for 70 form violations.

William Alexander Hector Allan has been an MFDA-registered dealing rep with Global Maxfin Investments since 2006. During the times of the violations, he carried out business in the Nanaimo, British Columbia area.

Allan admitted that, between January 5, 2015 and March 2, 2018, he altered 12 account forms in respect of nine clients without having the clients initial the alterations. In addition, he admitted that, between January 25, 2011, and May 18, 2018, he obtained, possessed and used to process transactions, 58 pre-signed account forms in relation to 17 clients.

With respect to the altered account forms, the respondent used liquid correction fluid to show that the change was “approved”. The forms included Order Entry Forms and KYC forms, and changes included alterations to spousal/beneficiary information, fund codes, fund names and amounts.

The pre-signed account forms included KYC forms, Order Entry forms, and Transfer DSC Free or Mature Units to Front End Forms.

Global Maxfin Investments detected the violations during a compliance review of all of Allan’s files. He was placed on strict supervision for six months, issued a warning letter, and handed a fine of $2,500.