A $30,000 fine has been levied against a former dealing representative of Investors Group Financial Services Inc. after he recommended a 95-year-old client switch from a no-load mutual fund to one subject to a seven-year deferred sales charge schedule.
A Hearing Panel of the Pacific Regional Council of the Mutual Fund Dealers Association of Canada (MFDA) heard that in 2018, Sergio Salina recommended to the client a switch of close to $500,000 from a no-load fund to a deferred sales charge schedule, generating himself a commission of almost $19,000 – money he would not otherwise have been entitled to and giving rise to a potential conflict of interest.
As well, between March 2016 and November 2016, he failed to disclose to his firm that he had been named a beneficiary in a deceased client’s will, which might have caused a conflict of interest to his firm.
In addition, between 2010 and 2018 he obtained and possessed 24 pre-signed account forms from 13 clients, contrary to his firm’s rules.
Investors Group terminated his position and Salina went on to get registered in five different provinces and two territories as a representative with Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada (IIROC).
In addition to the fine, Salina had to pay costs of $5,000 and ordered to comply in the future with MFDA rules.
