Two advisors fined after CIRO found improper use of client forms during tenure at Investia Financial
The Canadian Investment Regulatory Organization (CIRO) has released decisions involving Michael Wolfond and Susan Zmetana, following a settlement hearing held on April 15.
Both advisors were sanctioned under the Mutual Fund Dealer Rules for failing to properly execute client account documents, which led to the use of pre-signed and altered forms.
At the time of the violations, both conducted business through Investia Financial Services Inc. and are now registered with Designed Securities Ltd.
Despite working at the same firm, the reasons for decision do not reference each other.
Michael Wolfond admitted to obtaining, possessing and using three pre-signed forms for five clients and altering 40 account forms across 35 clients without obtaining client initials.
These included trade tickets, order entry forms, systematic instruction forms, transfer forms and one application form.
The altered information involved fund selections, investment instructions, account numbers, and dates.
The panel noted that at all material times, Wolfond worked in Regina, Saskatchewan and Calgary, Alberta.
He was with Investia Financial Services Inc. from July 2021 until resigning in December 2023, and has since been registered with Designed Securities Ltd. in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec and Northwest Territories.
CIRO confirmed a fine of $20,000 and costs of $3,000.
The panel acknowledged there were no client complaints, no financial losses, and Wolfond was under strict supervision with no further issues reported.
CIRO found that Susan Zmetana used 10 pre-signed forms for seven clients and altered 29 forms for 30 clients.
The affected documents included order entry forms, trade tickets, withdrawal forms, and application forms. The alterations covered changes to fund selection, investment amounts, fund codes, and account details.
At all material times, Zmetana worked in Regina, Saskatchewan. She was registered with Investia until her resignation on December 30, 2023.
She is now registered with Designed Securities Ltd. in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario.
The hearing panel confirmed the same fine and costs imposed on Wolfond.
The panel found Zmetana’s actions also occurred after CIRO’s key notices on the use of account forms. No clients lodged complaints or reported financial loss.
Investia’s internal branch review in October 2022 triggered both investigations. Each advisor was placed under strict supervision until January 2023 and issued warning letters in May 2023.
Neither had prior disciplinary records.
