A Mutual Fund Dealers Association of Canada (MFDA) hearing panel has issued its reasons for decision in the matter of former BMO Investments Inc. dealing representative, Chad Duart Boutilier, confirming that the MFDA has banned Boutilier from conducting securities-related business in any capacity with any MFDA member firm for one year. Boutilier has also paid a fine of $1,800 and costs of $1,800 after he admitted that he signed the signature of eight clients on eight account forms and submitted them to BMO for processing
According to the settlement agreement, Boutilier was registered between September 2018 and October 2019 when he was terminated by the firm. He is not currently registered in the securities industry in any capacity.
The falsified signatures were discovered in September 2019 as part of a branch review. After identifying one of the account forms in question, a subsequent investigation and review of a sampling of Boutilier’s files revealed the rest. All clients contacted by BMO advised the firm that they did not sign the account forms in question, but added that they had authorized the underlying transactions.
In the settlement agreement, the MFDA notes that there was no evidence of client loss. It was also noted that Boutilier has limited financial means and there is no evidence that he received any financial benefit from the misconduct beyond the commissions and fees he would ordinarily be entitled to were the transactions carried out in the proper manner.
In levying the penalties, the MFDA made a point of highlighting decisions and MFDA notices going back to December 2004 warning approved persons against signature falsification. “Signing a client’s name is not permitted. Hearing panels have consistently held that such action contravenes the standard of conduct under MFDA Rule 2.1.1,” they write.
