The Canadian Investment Regulatory Organization (CIRO) is continuing to sanction representatives for tampering with feedback results by changing client contact information, preventing those clients from responding to performance-linked surveys.
In the most recent case, the regulator has thrown former TD Investment Services Inc. branch manager, Jennifer Beh, out of the industry permanently and has issued a $50,000 fine for failing to cooperate with the regulator’s investigation.
The regulator’s predecessor organization, the Mutual Fund Dealers Association of Canada (MFDA) commenced its investigation after receiving a report alleging that Beh had changed client contact preferences in the dealer’s system which resulted in the firm not receiving the performance-linked satisfaction surveys. The surveys not only affected the representative’s variable compensation but also her eligibility for the company’s rewards and recognition programs.
Beh is being sanctioned for ignoring multiple notices sent to her by email, registered and regular mail to both Beh and her spouse. The letters requested an in-person interview or a phone call, and also requested a video conference, all of which Beh ignored. Her only response was to email staff to state, among other things, that she had no recollection of the events related to the survey allegations.
“The respondent failed or refused to attend the interview requested,” the regulator’s notice of hearing states. “As a result of the respondent’s failure to cooperate with staff’s investigation, staff cannot determine the full nature and extent of the respondent’s conduct.”
Registered since April 2010, the former branch manager resigned in October 2020. She is permanently prohibited from conducting securities-related business in any capacity with any CIRO member firm.
