After the Mutual Fund Dealers Association of Canada (MFDA), a Canadian investment Regulatory Organization (CIRO) predecessor organization, accepted a settlement agreement with Robert George Watts back in 2022, the regulator followed up in January 2024 with its reasons for fining Watts $20,000 after he and his assistants used pre-signed forms to transfer client accounts to a new firm.

In addition to altering 10 account forms for nine different clients and using those forms to process business without getting clients to initial the alterations, Watts is also accused of obtaining, possessing and in some cases using 47 pre-signed forms for 24 different clients.

Registered to conduct business in Manitoba since 1992, Watts was a dealing representative with Manulife Securities Investment Services Inc. from November 2012 until April 2016 when he transferred his business to Investia Financial Services Inc. The Winnipeg representative was also registered as a dealing representative with Investia in seven other provinces, as well.

“The respondent stated that he was required to transfer approximately 600 Manulife clients to Investia, and therefore had to complete dealer representative change forms and send them to the applicable mutual fund companies in order to advise the mutual fund companies that the clients’ mutual funds were now held through Investia,” the reasons for decision states.

During a week in April 2016 while conducting this business, Watts or his assistants sent incomplete dealer representative change forms to clients for signatures to which Watts and his assistants subsequently added relevant information before sending the forms to the mutual fund companies in question. “The respondent stated that after April 19, 2016, he and his assistants, at their own direction, stopped the practice.” 

In November 2019, Investia placed Watts under strict supervision and sent a mailing to all affected clients, charging Watts a $500 administration charge and $1,680 mailing charge. In March 2020, Investia issued a warning letter to the representative.

In addition to the $20,000 fine, to settle with the regulator, Watts will also pay costs in the amount of $2,500.