Advisor Faces Hearing for Use of Pre-Signed FormsBy Andrew Rickard | April 16 2015 08:38AM
The Mutual Fund Dealers Association (MFDA) is meeting to consider the case of Cho Shan Yeung, an advisor with Primerica's fund division PFSL Investments Canada. The MFDA alleges that he obtained more than 100 pre-signed account forms.
In an unannounced visit to the firm's branch in Richmond, British Columbia earlier this year, PFSL compliance staff say they discovered that Yeung had obtained 75 blank or partially complete pre-signed account forms and used them to process transactions for eight clients. Following this audit, PFSL compliance staff began an investigation into the advisor's conduct and found he had prepared another 26 blank or partially complete pre-signed documents. The MFDA says that most of the paperwork Yeung had assembled consisted of either trading or Know-Your-Client documents.
By engaging in this conduct, the regulator says that Yeung acted contrary to MFDA Rule 2.1.1. and it has set a hearing date in Vancouver for May 26. The MFDA hearing panel has the power to impose a number of penalties, including a reprimand, a fine, as well as a temporary or permanent suspension of the advisor's license.