The representative faces $14,000 fine after CIRO finds misuse of pre-signed and altered client account forms
The Canadian Investment Regulatory Organization (CIRO) has sanctioned Abram Edward Toews following a settlement agreement approved by a hearing panel on February 21.
The decision, issued under the Mutual Fund Dealer Rules, addresses misconduct related to pre-signed and altered account forms while Toews was a dealing representative at Quadrus Investment Services Ltd. in Regina, Saskatchewan.
CIRO found that between June 1, 2016, and May 30, 2019, Toews, or an assistant under his supervision, obtained, possessed, and used 22 pre-signed account forms for 13 clients.
Additionally, between August 30, 2016, and June 5, 2017, Toews, or his assistant, altered two account forms for two clients without ensuring that the clients initialled the changes to confirm authorization.
As per the Mutual Fund Dealer Rule 2.1.1, these actions constitute a regulatory breach. Toews agreed to a settlement that includes:
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A $14,000 fine, payable in certified funds upon settlement approval.
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$3,000 in costs, also payable upon settlement approval.
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A commitment to comply with the Mutual Fund Dealer Rules moving forward.
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Attendance at the settlement hearing.
In April 2022, a branch review by Quadrus Investment Services Ltd. uncovered some of the pre-signed and altered forms. This prompted a full review of Toews’ client files, revealing additional violations.
To verify the legitimacy of transactions, the firm sent audit letters to affected clients, but no clients raised concerns.
On April 27, 2022, Quadrus issued a disciplinary letter to Toews and placed him under six months of close supervision. The firm did not identify any further issues during this period.
Toews paid $2,400 in supervision fees during this time.
CIRO noted that the most recent violation occurred in May 2019, nearly three years before the regulatory body identified the infractions.
The regulator also acknowledged that Toews had no prior disciplinary history and that no clients experienced financial loss due to the infractions.
Toews remains registered with Quadrus Investment Services Ltd. in Saskatchewan and continues to operate in the investment industry.
