The Mutual Fund Dealers Association has permanently banned a mutual fund salesman for obtaining and failing to destroy blank, pre-signed forms.
A settlement hearing in the matter of Richard Michael Hefford was held Tuesday in Winnipeg, before a hearing panel of the MFDA’s Prairie regional council. The panel accepted the settlement agreement between MFDA staff and Hefford.
In the agreement, Hefford admitted that between Mar. 7, 2005 and Mar. 6, 2009 violated MFDA by-laws by obtaining and possessing 170 blank, pre-signed forms for approximately 65 client accounts. In addition, he failed to comply with his branch manager’s directions on six occasions to destroy all pre-signed blank investment forms in client files and to cease obtaining more of them.
Hefford also admitted that in 2008 and 2009, he entered into a referral arrangement with a portfolio management company that he did not disclose to his firm.
As a result of the settlement agreement, Hefford has been permanently prohibited from conducting securities related business in any capacity while in the employ of or associated with any member of the MFDA; and has paid costs of $5,000.
The violations occurred when Hefford was registered in Manitoba and Alberta as a mutual fund salesperson with AEGON Dealer Services Canada Inc. and Investia Financial Services Inc.
Hefford was terminated by Investia on June 7, 2002.
The panel said it will issue written reasons for its decision in due course.