An advisor with B.C.-based Monarch Wealth Corporation has been sanctioned after she engaged in personal financial dealings with a client, contrary to the rules of the Mutual Fund Dealers Association of Canada.
Liliana Teresa Marin told an MFDA hearing that she deposited cheques from a client into a bank account that she could access and paid the proceeds of those cheques to the client or third parties on behalf of the client as per the client’s directions.
There was no evidence that Marin misappropriated any of the money from the proceeds of the cheques, nor did the client allege that any of the money was unaccounted for.
Both Monarch and MFDA conduct investigation
However, in taking the action she did, the MFDA said Marin engaged in conduct that could be seen as a conflict or potential conflict of interest that she failed to disclose.
Monarch conducted an investigation and then required Marin to complete the CSI’s IFSE 90-day training course, as well as complete Monarch’s anti-money laundering course, a 60-day suspension, a deduction of half of the commission income Marin would have earned during the suspension and a requirement to submit to six months of close supervision by Monarch compliance staff. She was also told to pay $1,000 a month during the close supervision period to cover Monarch’s costs of greater supervision.
In addition, the MFDA ordered that Marin be prohibited from conducting securities-related business in any capacity while in the employ of or associated with any MFDA Member for one year, plus pay a fine of $10,000 and costs of $7,500.
