A hearing panel of the Mutual Fund Dealers Association has approved a settlement agreement with PFSL Investments branch manager, Michael Bast.
Under the agreement, Bast admits that he obtained, possessed and in some instances used 20 pre-signed account forms for seven different clients. While he was acting in his capacity as branch manager, the Waterloo, Ontario representative also reviewed and approved the use of 19 pre-signed account forms, contrary to the MFDA’s rules and contrary to his firm’s stated policies.
Despite signing annual attestations where he acknowledged that he would not obtain pre-signed account forms, the advisor of 25 years admitted that he collected and in some cases used the forms, initially found during the course of a routine branch audit. No clients reported any concerns in response to audit letters sent to all of Bast’s clients. In May 2018, PFSL disciplined the advisor, issuing a warning letter to Bast, and putting him under close supervision for six months.
Under the MFDA settlement agreement, Bast will pay a fine of $12,500 and MFDA costs of $2,500. Bast is also suspended from acting as a branch manager, or in any supervisory capacity with any MFDA member for a period of three months and must complete the branch manager’s course offered by the Canadian Securities Institute, or the Investment Funds Institute of Canada before he can act as a branch manager again in the future.
