A Mutual Fund Dealers Association of Canada (MFDA) hearing panel has accepted a settlement agreement with Desjardins Financial Security Inc. representative Albert Hoo-Cheong Koo after Koo admitted he made changes to client forms without getting clients to initial those alterations.
Discovered as part of an audit, Koo admits he altered and used to process transactions, 28 account forms including letters of direction, trade tickets, know your client update forms, mutual fund application forms and Tax Free Savings Account application forms for 15 different clients without having the client initial the changes.
According to the settlement agreement, the forms were altered between February 2014 and February 2017. Desjardins policies requiring clients to initial or otherwise provide written authorization for changes after documents are signed, was not in place until June 2016. Koo has been under close supervision since April 2019. The MFDA says there is no evidence of client loss or lack of authorization for any transactions.
In addition to a $12,000 fine, under the MFDA’s settlement agreement Koo will also pay $2,500 in costs, will be banned from acting as a branch manager or supervisor for three months and must successfully complete either the Canadian Securities Institute or Investment Funds Institute of Canada branch manager’s course before acting as a branch manager again in the future.
