A financial advisor has been permanently banned from conducting securities-related business and fined $125,000 after she set up real estate investment businesses not approved by her employer.
A hearing panel of the Mutual Fund Dealers Association (MFDA) found Lucillia Sok Cheng Tan set up the outside businesses between August 2012 and April 2019, engaging in outside businesses not disclosed or approved by her firm, WFG Securities Inc. in Burnaby, B.C.
Potential conflict of interest arose
The advisor also did not disclose to WFG Securities that clients of the firm invested with a real estate business owned or operated by the advisor and her family, which could have resulted in a potential conflict of interest.
The MFDA said that during a branch audit inquiry, WFG Securities discovered that the advisor included a website for a company called “Fairlock Partners” in her email signature. The website contained a promotional video that appeared to be designed to attract investors. At least five people, including four clients of WFG, invested in the real estate firm.
In addition to the permanent ban on conducting securities-related business while working for any MFDA member, and the fine, the advisor was also assessed costs in the amount of $10,000.
