A former mutual fund salesperson with Sun Life Financial Investment Services (Canada) Inc. has been fined and permanently banned by the Mutual Fund Dealers Association of Canada (MFDA) for misappropriating client funds.
At a disciplinary hearing in Vancouver on Tuesday, a hearing panel found that allegations against Dorothy Siu Wah Chan had been established.
Chan was registered in British Columbia as a mutual fund salesperson with Sun Life from January 2004 to May 2009. She was also licensed in B.C. as an insurance agent with Sun Life Financial Distributors (Canada) Inc. from June 2003 to July 2009. She operated from a branch located in Burnaby, B.C.
The MFDA panel found that between January 2004 and May 2009, Chan misappropriated approximately $754,340 and US$94,200 from at least 18 individuals, three of whom were clients, thereby failing to deal fairly, honestly and in good faith with the clients and engaging in conduct unbecoming.
In May 2009, Chan was terminated by Sun Life as a result of these events.
Chan has been permanently prohibited from conducting securities related business while in the employ of, or associated with, any MFDA member, and has been ordered to pay a $650,000 fine and $5,000 in costs.
The panel said it will issue written reasons for its decision in due course.