Advisor made a "mockery" of KYC process

Advisor made a "mockery" of KYC process

Advisor made a "mockery" of KYC process

An investor protection organization has been left “speechless” after a Calgary advisor permitted or directed staff to fill in pre-determined investment profiles on account forms for approximately 364 clients.

Shafique Hirani (a.k.a. Shafik Hirani) accepted an IIROC settlement agreement of a $70,000 fine, a three-month suspension from acting in a registered capacity, a period of close supervision for six months and an order to rewrite the Conduct and Practices Handbook exam. He also agreed to pay $15,000 costs.

The ruling detailed how in some cases his offences included inserting the profiles into partially completed forms that had already been signed by clients.

The violations took place between February 20 and April 16, 2015 when Hirani was a rep with the Calgary branch of Investors Group Securities Inc. He is currently working with Aligned Capital Partners Inc, also in Calgary.

Kenmar Associates, a firm dedicated to investor protection and education, said the advisor had “made a complete mockery” of the core KYC process and questioned how he is still in the profession.

It stated: “What transactions were made as a result of the massive document adulteration? Was supervision and compliance asleep? Were clients advised of the changes made to their investment profiles?

“Why is this person allowed to be exposed to investors' retirement nest eggs just because he may pay the fine? [It’s] interesting that he was hired by another firm while he was under investigation. We are speechless.”

Meanwhile, an advisor has admitted accepting tickets to entertainment events from representatives of mutual fund companies whose funds represented the majority of his clients’ holdings.

The total cost of the tickets was in excess of $32,000, while the respondent repaid $28,430 of this amount in September 2016.

These included 16 concerts, including eight to an Enrique Iglesias, below, and Pitbull event, and tickets in 2015 and 2016 to the Formula 1 in Montreal.

Sam Deones Panzures accepted an IIROC settlement agreement of a $60,000 fine and $5,000 costs. The violations occurred when he was a registered representative with the Toronto branch of HollisWealth, a division of Scotia Capital. Panzures is currently working with Industrial Alliance Securities, also an IIROC regulated firm.

During the relevant period, Panzures Wealth Management had a book of business in excess of 850 households and approximately $400 million in assets under management.

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