The Mutual Fund Dealers Association of Canada (MFDA) has fined Scott Michael Kelly, a former financial planner in the Toronto area, $50,000 for forgery and failing to comply with an investigation.
According to the decisions and reasons document, Kelly, a former employee of RBC Wealth Management, admitted to forging the signatures of two clients on a financial planning agreement. He forged the signatures after unsuccessfully trying to have the clients sign the form in time for his performance review because the unsigned document would have a negative impact on his review and compensation.
In August 2011 a branch compliance officer discovered the false signatures on the financial planning agreement. The next day, Kelly resigned from his position with RBC.
Afterwards as part of the MFDA investigation into the forged documents, Kelly was sent three letters, according to the decisions documents, asking him to provide certain information and reminding him that failure to comply would result in a disciplinary hearing. The first two letters went unanswered.
At a hearing in October 2012, Kelly said he did not answer the letters because he moved shortly after resigning from RBC and did not update his mailing address with the MFDA. After receiving the third letter, originally delivered to his mother, Kelly maintained that he complied with the investigation.
During a January 2013 hearing to decide on a penalty, the panel found that Kelly did not take the investigation seriously and therefore did not properly co-operate with the MFDA.
In addition to the fine, Kelly is permanently banned from conducting any securities related business with an MFDA member and must pay $5,000 in costs.