Two Vancouver-area mutual fund dealers must pay thousands of dollars in penalties for forging client signatures.
The Mutual Fund Dealers Association (MFDA), which regulates dealers and brokerage firms, found Xiao Feng Xin signed a client’s signature on a tax-free savings account (TFSA). That eventually led to a tax penalty of $1,593 due to an overcontribution in 2019. At the time, Xin was working as a dealing representative for TD Investment Services Inc. in New Westminster.
“By opening of a new TFSA for client JW and registering client JW for a monthly [pre-authorized purchase plan] without the client’s authorization, the respondent stood to earn credit towards his eligibility for semi-annual bonus income in January 2019,” noted the MFDA settlement agreement April 18.
Xin is no longer registered in the securities industry in any capacity and has been issued a one-year suspension from conducting securities-related business overseen by MFDA. He was also fined $10,000 and must pay costs of $5,000.
The association recognized Xin entered into a settlement agreement with it and had not been subject to prior discipline.
The same week, the association also announced penalties against dealer Yeram Kwak, who also worked for TD Investment Services Inc. but in Surrey, between December 2017 and March 2020.
Kwak’s branch launched an investigation when it found Kwak had signed for a client.
Kwak incurred an $11,000 penalty and, noted the association, “there is no evidence that the respondent (Kwak) received any financial benefit from the conduct set out above beyond the commissions or fees she would ordinarily be entitled to receive had the transactions been carried out in the proper manner.”
Nor was there harm to an investor.
Kwak no longer works in the industry, according to the settlement agreement.
