Former Sun Life Financial Service rep banned for two years and fined by the MFDA
An advisor has been banned for two years and fined $7,500 for a host of trading and form violations.
James Edward Drysdale was registered in Ontario with Sun Life Financial Services from 2006 to 2016. He admitted that, between February and November of 2015, he submitted for processing at least 17 transactions in the accounts of six clients without maintaining adequate notes of instructions from the clients.
An MFDA investigation also found that, between March 10, 2006, and May 19, 2016, he maintained at least 62 blank pre-signed and/or altered account forms in respect of 47 clients, thereby failing to observe high standards of ethics and conduct in the transaction of business or engaging in conduct unbecoming an Approved Person.
With regards to the transaction violations, Drysdale stated he had received instructions from the clients to complete the trades, which totalled almost $50,000. He did not, however, document or otherwise maintain records/notes of such trading instructions, including, among other things: the time and date of the discussions with, or instructions received from, the clients; and details of what mutual funds, including unit prices and amounts, were discussed to be traded by the clients.
Meanwhile, the 62 pre-signed forms included trade order forms, LTAs, know-your-client forms and new account application forms.
The MFDA stated: “A number of forms contained photocopied client signatures with other information added in ink. On some client forms, the Respondent or his unlicensed assistant had: altered client information without the clients having initialled or otherwise evidenced their agreement to such alterations on the documents; altered dates without the clients having initialled or otherwise evidenced their agreement to such alterations on the documents; or added information, including client information, trade instructions or account numbers, after the clients had signed the forms but without the clients having initialled or otherwise evidenced their agreement to the addition of such information.”
Drysdale must also pay $2,500 in costs.
