MFDA bans former rep for failing to cooperate with investigation

Regulators have banned a former fund rep who was accused of failing to cooperate with an investigation into the liquidation of his father’s investment accounts.

A hearing panel of the Mutual Fund Dealers Association of Canada (MFDA) has banned former rep Frank Louis Surette and fined him $50,000 following a hearing into allegations that he failed to cooperate with an MFDA investigation. The panel has not yet issued its reasons in the case.

Following a hearing on Nov. 5, the panel imposed the sanctions on Surette, who was a rep with Peak Investment Services Inc. until March 2017.

In a notice of hearing, the MFDA stated that between December 2015 and October 2016, Surette fully liquidated his father’s accounts and deposited the proceeds into accounts controlled by Surette and/or his former spouse.

The account activity was questioned by Surette’s firm following a branch review. The firm reported concerns about these transactions to the MFDA, which launched an investigation in January 2017.

The MFDA alleged that Surette failed to cooperate with an investigation into his handling of his father’s accounts.

“As a result of the respondent’s failure to cooperate with staff’s investigation, staff has been unable to determine whether the transactions … contravened the respondent’s regulatory obligations and if so, the full nature and extent of those contraventions,” the MFDA stated.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.