Former RBC representative admits to creating inaccurate proof of funds letter, faces sanctions
The Canadian Investment Regulatory Organization (CIRO) held a settlement hearing on December 3, regarding Emilio Nafarrate, a former Registered Representative at RBC Dominion Securities Inc.
The hearing panel determined that Nafarrate failed to conduct due diligence when preparing a proof of funds letter for a potential client.
The letter, issued in August 2023, falsely confirmed liquid assets of $250m in a corporate account at RBC Dominion Securities. Investigations revealed that the account had a negative balance at the time.
CIRO cited the creation of the letter without verification as a contravention of its Investment Dealer Rules.
The panel accepted a Settlement Agreement outlining sanctions.
Nafarrate received a $14,000 fine, a nine-month prohibition from conducting securities-related business, and a requirement to complete the Conduct and Practices Handbook Course or its equivalent.
He must also pay $3,000 in costs.
Nafarrate’s employment at RBC Dominion Securities was terminated in October 2023 following an internal investigation.
Despite the misconduct, there was no financial benefit for Nafarrate nor harm to investors. The panel noted his cooperation and lack of prior disciplinary history.
The panel deemed the sanctions reasonable and proportionate, emphasizing that compliance with rules is mandatory for investment representatives.
