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.
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.
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.