A Canadian Investment Regulatory Organization (CIRO) hearing panel has fined Erika Fawcett $10,000 and ordered costs in the amount of $1,500 for conducting trading activity for clients in provinces where she was not registered, for photocopying signatures, keeping pre-signed forms and for altering forms without obtaining clients’ initials to authorize the changes.

Fawcett, registered in Ontario since July 2017, was working for a licensed dealing representative who was registered in other provinces. She resigned in August 2022 and is not currently registered in the securities industry. 

Used her supervisor’s representative code 

Specifically, in addition to the out of province trading which she conducted using her supervisor’s representative code, Fawcett is also being sanctioned for photocopying four client account forms that had been previously signed by clients and using those forms to complete new transactions. She also altered five account forms for three clients without having the clients initial the alterations. Finally, she is being sanctioned for keeping and using 28 pre-signed account forms for nine clients. 

During the hearing, CIRO’s staff asked for a fine of $15,000, saying they ordinarily would’ve sought a fine of $30,000, plus costs.

“The respondent attended the hearing in person,” the decision and reasons document states. “She indicated that she was not making excuses, but she wanted the panel to know she did not act alone.” The document further quotes Fawcett as saying that the company she was employed with “never once came to me and asked why my signature was on those documents.” The decision adds: “She indicated that the company did not intervene. She also said that her boss was fully aware of what she was doing. She said she did what she was told to do by her boss.”