Forgery “widespread” in investment industry: SIPA

By Staff | May 31, 2017 | Last updated on May 31, 2017
1 min read

The MFDA’s recently published 2016 enforcement report reveals that the SRO continues to crack down on pre-signed forms and other signature falsification practices. Registrants got a hint of this priority in January 2017, when the SRO reissued a staff notice on falsification.

Read: Stop using pre-signed forms, pleads MFDA enforcement report

That re-publication “is indicative that forgery is widespread,” says a new report by the Small Investor Protection Association (SIPA), which highlights forgery and falsification cases. The report follows previous scathing papers by SIPA on advisor titles and financial services.

Though the report acknowledges that the MFDA’s increase in falsification cases is the result of improved detection and reporting, it expressly says the investment industry can’t be trusted, citing the CBC Go Public investigation and several suitability cases.

Read: Investor rights firm files class action against TD in wake of CBC reports

SIPA is calling on the Canadian government to interview victimized people for their testimony and not rely on reports by industry or regulators. “History shows self-regulation is not effective in providing consumer protection,” says SIPA, in a release. For example, the report refers to the ineffectiveness of the Financial Consumer Agency of Canada.

Read the full SIPA report, which lists SRO disciplinary cases and includes the MFDA’s falsification bulletin and several news articles.

Also read: Opinion: How to reform a rotting banking advice system staff


The staff of have been covering news for financial advisors since 1998.