The Canadian Investment Regulatory Organization (CIRO) has published at least three separate cases in which bank affiliated registered representatives altered client contact information to prevent clients from filling out feedback surveys. In all three cases, negative surveys would potentially impact the representative’s job performance scores.

In two cases, branch managers were suspended for two and three months, respectively. Megan Lynn Stokes entered into a settlement agreement with CIRO, under which she will be suspended from acting in a supervisory capacity for two months, must pay a fine in the amount of $7,500 and CIRO’s costs, totaling $5,000. She must also successfully complete coursework within 12 months. The representative was a branch manager with TD Investment Services Inc. in the Uxbridge and Pickering, Ontario areas.

Also with TD, Toronto-area representative, Susan Suet Man Cheung was suspended from acting as a branch manager or in any supervisory capacity for three months. She will pay a fine of $10,000 and costs in the amount of $5,000 and will also complete coursework after also entering into a settlement agreement, admitting she instructed an approved person under her supervision to opt clients out of receiving similar surveys and promotional material, without the consent of clients.

At all material times, the settlement agreements state, the representatives’ variable compensation was based on a composite of metrics, including customer feedback, derived from satisfaction surveys which were emailed to clients after approved persons had processed transactions or account changes on their behalf. In Stokes’ case, the branch manager altered characters in client email addresses without client consent.

“The dealer member prohibited approved persons from editing or deleting a client’s information contained within the client contact information system without the consent of the client,” one settlement agreement states. “The respondent engaged in the misconduct set out above in order to prevent clients from receiving a survey which could have potentially negatively affected the customer feedback metric for the respondent’s branch, as well as her eligibility for rewards and recognition programs.” 

In both cases, the branch managers were reprimanded and suspended without pay for three days.

In a third case, this time involving a Winnipeg, Manitoba area Royal Mutual Funds Inc. representative, Megha Arora, who has since left the industry, is accused of making 1,161 unauthorized changes to client contact information for similar reasons. “Survey results of a certain value reduced the client loyalty metric for the respondent’s business location and may have required an approved person to attend additional training,” her settlement agreement states.

Arora was suspended from conducting any securities related business with any CIRO member firm for a period of 18 months. She was also ordered to pay a $5,000 fine and costs in the amount of $5,000.