Respondent also fined $40,000 by MFDA for carrying out conflicting executor and advisor roles
A former advisor has received a life ban and a $40,000 fine from the MFDA after admitting violations related to being an executor, trustee and beneficiary for clients or their estates.
James Russell Taylor had been an advisor since 1990 and, from 2002 to January 9, 2016, was registered with FundEx Investment, conducting business in the Etobicoke, Ontario region.
The violations concerned two clients. After being appointed as the co-executor/trustee of the first client upon her death in 2006, in 2011 the MFDA revised its policies and procedures to prohibit its advisors from doing this while still advising the client or their estate.
A subsequent audit by the firm found Taylor to be doing just this for two clients and he was instructed to either resign any positions he held as executor/trustee at the time or move the clients’ accounts to another firm.
Following the audit, 75% of the first client’s assets were transferred from the company, yet Taylor continued to service two RESP accounts controlled by the client’s estate until about October, 2015.
In relation to the second client, following the passing of the other co-executor/trustee, she named Taylor as the sole executor and trustee of her estate in her will, making the advisor responsible for the management of a charitable foundation to be formed after her death. Taylor was also named as the beneficiary of certain Air Miles reward points.
At the time of the client’s passing in November, 2014, she held one TFSA with FundEx, valued at approximately $5,000. In June, 2015, the respondent agreed to be executor/trustee of the estate and accepted the Air Miles, which Taylor told the MFDA had a cash value of less than $500.
Taylor was also found by the MFDA hearing to have failed to co-operate with the investigation into his conduct.
