The Canadian Investment Regulatory Organization (CIRO) hearing panels continue to hand out sanctions to advisors in the habit of improperly altering account forms without getting client initials to indicate authorization. In the most recent case, Sherry Susan Hanson is being sanctioned for altering 52 account forms for 33 different clients between January 2017 and January 2022.
The CIRO hearing panel accepted a settlement agreement with Hanson, after the Ottawa-area dealing representative admitted to the transgressions, following an internal compliance review which discovered one altered form and following two subsequent reviews which uncovered the remaining forms in question.
The altered forms included account opening forms, transfer agreements, know-your-client (KYC) forms, letters of direction, redemption forms and others. Alterations included changes to risk tolerances, redemption amounts, liquid assets and net worth amounts, dates and more.
Placed under close supervision
Registered in the securities industry since 1998, and employed with her current firm since 2012, the dealing representative was placed under close supervision in November 2022, which remains ongoing today.
“At all material times the dealer member’s policies and procedures prohibited approved persons from altering or correcting any information on client account forms, without having the client initial the alterations to show that the change was authorized,” the settlement agreement states.
In addition to a fine in the amount of $26,000, Hanson also agreed to pay costs in the amount of $2,500.
