The Mutual Fund Dealers Association (MFDA) has begun disciplinary proceedings against Frank K. Shaw, a representative and branch manager at World Financial Group Securities (WFG). The regulator alleges that Shaw used pre-signed trading forms. The MFDA has also initiated disciplinary proceedings against Richard J. Dhur, the alternate branch manager at WFG Securities who approved the trades.

In a Notice of Hearing issued on Feb. 4, the MFDA claims that between July 2008 and May 2013 Shaw obtained 24 account forms or photocopies of forms for ten clients that were blank or only partially complete at the time they were signed. He later filled in these forms and used them to process transactions. The MFDA also alleges that Shaw added know-your-client information on four new account application forms after they had been signed by clients.

Dhur says that he and Shaw kept a supply of pre-authorized trade tickets at the clients' verbal requests, and that distance was often the prime factor. Dhur also says that in no case was there a misuse or misappropriate of the client's funds, and that all of the trades were executed according to the clients' specific directions.

The MFDA alleges that these actions were contrary to MFDA Rule 2.1.1, and is conduct unbecoming an approved person. The hearing will take place on Feb. 23 in Toronto.