Remedial education and fine ordered for branch manager

The Mutual Fund Dealers Association of Canada (MFDA) has sanctioned Timothy James Laskey for photocopying forms, using pre-signed forms and for altering forms without getting clients to initial the alterations. All told, the MFDA fined Laskey $28,000 plus costs in the amount of $2,500 and decided that the former branch manager should be prohibited from acting as a branch manager or in any supervisory capacity with any MFDA member firm for 18 months. The representative was also ordered to complete additional continuing education.

Prior to this, Laskey’s own firm, Quadrus Investment Services Ltd., also issued a disciplinary letter, placed Laskey under close supervision and ordered him to pay $400 each month for the close supervision, for a total of $2,400. It also required Laskey to review MFDA notices about signature falsification, review the member’s policies and complete additional internal training. Quadrus completed its close supervision in September 2021.

The sanctions and disciplinary actions stem from the fact that Laskey was found to have at least 36 pre-signed account forms for 10 different clients in his book of business. Additionally, between February 2017 and December 2020 he photocopied and re-used five account forms that had previously been signed by clients to process new transactions for four different clients. Between March 2015 and January 2021 he also altered 15 account forms for 12 different clients and used those forms to process transactions without getting clients to initial the alterations.

The forms found in the London, Ontario rep’s files included redemption forms, switch and conversion forms, one Canada Revenue Agency form, transfer authorization forms and a management and administration services fee agreement. During its investigation, the firm said no clients responded with any concerns about Laskey’s conduct. The MFDA also concluded that there was no evidence of client loss, complaints or lack of authorization.

In addition to the monetary sanctions and the suspension from acting as a supervisor, Laskey must also successfully complete the branch manager’s course offered by the Canadian Securities Institute (CSI), or by the Investment Funds Institute of Canada (IFIC) prior to acting as a branch manager again in the future.