An advisor with FundEx Investments in Kingston, Ontario has been suspended for a month and fined $28,500 after a hearing panel of the Central Regional Council of the Mutual Fund Dealers Association (MFDA) agreed to a settlement that the advisor altered account forms.
The MFDA said Jason Daniel Hare was suspended from conducting securities-related business for 30 days, fined and asked to pay costs of $2,500,
In the settlement agreement, Hare admitted to possessing 120 pre-signed account forms and processing the transactions, as well as altering 45 account forms without the client’s initialling the change – in one case, using correction fluid to alter the forms.
No complaints from clients
The MFDA noted that there is no evidence that Hare received any financial benefit from the misconduct other than the commissions or fees he would ordinarily receive. It also made mention that there was no evidence of client loss, complaints or lack of authorization for the underlying transactions.
The information the advisor altered included fee and purchase amounts, fund codes and names, plan types, account numbers and beneficiary names.
In addition to the financial costs Hare will pay, he has also agreed to comply from now on with MFDA rules against altering forms and accounts without client approval.
