CIRO bans former BMO Investments mutual fund rep over unauthorized trades
On March 16 and 20, 2023, without speaking to the client, she electronically signed the client’s signature on four account forms, processed unauthorized transactions, changed the KYC information, and cancelled and replaced the bi-weekly pre-authorized contributions in both accounts.
She recorded notes in the client’s electronic file that falsely stated the client had instructed the changes.
The KYC record moved from a conservative balanced investment objective, low risk tolerance and fair investment knowledge to equity growth, medium-to-high risk tolerance and knowledge described as “somewhat knowledgeable”, shifting the investor profile from conservative to aggressive.
Holdings in the BMO SelectTrust Conservative Portfolio were transferred to the BMO SelectTrust Equity Growth Portfolio in the RRSP and the BMO Dividend Fund in the TFSA.
Between March 27 and 29, 2023, the client discovered and reported the activity, then closed her TFSA and transferred her remaining holdings back to a conservative portfolio.
