A mutual fund representative has been fined after admitting to altering forms without clients’ authorization.
In a decision notice released Friday, the Canadian Investment Regulatory Organization (CIRO) said it approved a settlement with Leander Don Dueck after he admitted that he, or his assistant, altered forms without clients’ authorization. The settlement included a $55,000 fine plus $5,000 in costs.
Dueck must also complete an ethics or industry course acceptable to CIRO within 12 months as part of the settlement agreement.
Between 2016 and 2022, Dueck or his assistant at Quadrus Investment Services Ltd. obtained 118 pre-signed forms from 43 clients to process transactions, in contravention of a mutual fund dealer rule.
Dueck, or his assistant, altered 15 of the forms from 13 clients without having the clients initial the forms to show that the changes were authorized.
The alterations included changes to investment instructions, initial investment amounts, redemption amounts, withholding tax percentages, deferred sales charge fee percentages (indicated as 0% on the forms at issue), plan numbers, fund names and codes, load types, client banking information, and client personal information signature dates.
In April 2022, during a branch review, Quadrus Investment Services discovered the pre-signed and altered account forms and conducted a full review of the client files maintained by Dueck. The firm also sent audit letters to the clients regarding the pre-signed and altered account forms “to determine the accuracy of the information and whether the underlying transactions were authorized.”
“There is no evidence of client financial loss or lack of authorization for the underlying transactions, and no clients have complained to CIRO or the Dealer Member,” the settlement agreement said.
Quadrus Investment Services issued Dueck a disciplinary letter and placed him under close supervision for a period of six months, during which the firm reported no further issues. Dueck also paid $2,400 to cover the costs associated with the supervision.
Dueck has been registered in the securities industry since 2003 and became a Saskatchewan dealer representative in 2011. He has not previously been the subject of Mutual Fund Dealers Association or CIRO disciplinary proceedings.