Funds advisor slapped with $25,000 fine for unbecoming business conduct

The Canadian Investment Regulatory Organization (CIRO) recently released details of its settlement with Ramanbhai Patel, a dealing representative with PFSL Investments Canada Ltd., who was fined $25,000 for breaking company rules.

Patel was also ordered to pay $2,500 in costs. 

The decision says that between May 26, 2016, and June 1, 2021, Patel obtained, possessed and used to process transactions, 80 pre-signed account forms for 29 clients. 

His actions, according to CIRO’s ruling, contravened not only the regulator’s business conduct rules but also went against PFSL Investments’ policies and procedures, which prohibit its representatives from using pre-signed account forms. 

The documents included subsequent contribution forms, redemption request forms, purchase forms, Know Your Client forms and new account forms. 

The CIRO ruling states that Patel did not receive any financial benefit from this misconduct, beyond the commissions or fees he would have received if transactions had been done properly. 

The regulator’s decision also states that there was no client loss, client complaints or lack of authorization for the underlying transactions. 

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Patel, who mostly conducts business in Ontario’s Woodbridge area, was promoted to branch manager on July 9, 2004. He served in that position until his employer took the designation away on January 28, 2022.

PFSL Investments simultaneously issued Patel a reprimand letter and required him to review company policies and procedures and to complete internal training, which Patel has already finished. 

The regulator served Patel a 30-day suspension starting July 26, 2023, during which he was forbidden from conducting securities-related business in any capacity while working with PFSL Investments. 

CIRO’s decision also disallows Patel to act as branch manager or in any supervisory capacity for two years, also starting July 26, 2023.