Small business advisor also found to have conducted unauthorized trading in MFDA hearing
A Scotiabank employee has been fined $20,000 by the MFDA for KYC violations and unauthorized trading.
Nadine Wighton was registered in Ontario as a dealing representative with Scotia Securities Inc. from 1998 to 2017, when she was terminated in connection with the events that led to the penalty. During this time, she carried out business from a branch located in Hamilton.
Wighton is not currently registered in the securities industry in any capacity. However, she remains employed with Scotiabank as a small business advisor.
The violation concerned a client whose family operated their own business and were high-net-worth clients of Scotia Securities.
The MFDA settlement hearing concluded that between December 24, 2009 and February 12, 2013, the respondent failed to conduct adequate due diligence to learn, or accurately record on account documents, Know-Your-Client information for the client.
In addition, Wighton arranged for the client’s account statements to be delivered to a third party without taking adequate steps to determine whether the client had authorized and was aware of the address change, thereby failing to ensure that the confidential information relating to the client was maintained in confidence.
Finally, Wighton acted upon trade instructions regarding two deposits and purchases in the client’s investment account that came from a third party who did not possess trading or signing authority, thereby engaging in unauthorized trading.
She must also pay $5,000 in costs.
