An advisor with Investia Services Financiers Inc. in the Campbellton, New Brunswick area has agreed to pay a fine of $20,000 plus costs after he acknowledged he altered and then processed 24 accounts in respect of 17 clients.
The Mutual Fund Dealers Association of Canada (MFDA) said that between May 2012 and June 2019, Gilles Perron possessed and, in some instances used to process transactions, 77 pre-signed account forms in respect of 27 clients. The pre-signed account forms included 76 investment instruction forms and one Know Your Client Form, contrary to MFDA rules.
The MFDA also said that between December 2013 and June 2019, Perron altered and used to process transactions, 24 account forms in respect of 17 clients by altering information on the account forms (using correction fluid or other means) without having the clients initial the alterations.
Altered forms found during audit
The altered forms were discovered in November 2018 during a branch audit and Perron was placed under strict supervision. After that, all his transactions were reviewed and approved by the compliance supervisor before being processed.
The MFDA said there was no evidence that Perron received any financial benefit from altering the forms beyond the usual commissions and fees and there was no evidence of any loss to clients. Both MFDA staff and Perron recommended that the MFDA Hearing Panel accept the settlement agreement.
