MFDA fines and bans former rep for misconduct

A regulatory hearing panel has fined and permanently banned a former mutual fund representative accused of inappropriate personal financial dealings with a couple of clients.

A hearing panel of the Mutual Fund Dealers Association of Canada (MFDA) has permanently banned Jewel Mary Henricks, a former rep with PFSL Investments Canada Ltd. in Prince George, B.C., fined her $50,000 and ordered $10,000 in costs following a hearing into allegations that she took money from clients and deposited it into her personal bank accounts. She was also accused of failing to participate in the MFDA’s investigation into her conduct.

The panel issued its decision on sanctions and said that its written reasons will follow “in due course.”

According to the allegations against Henricks, on two occasions in 2017 she allegedly took money from clients — a $5,000 cheque and $3,500 in redemption proceeds — and deposited the money into her personal accounts.

While the $3,500 was later given to the client in cash, the $5,000 cheque was supposed to be “invested” in a “gifting program” pyramid scheme. According to the allegations, the client never received any payout from the scheme.

The MFDA also alleged that Henricks recorded her own address and email address on several client account applications, and that she failed to participate in its investigation, citing health issues.

In 2018, she was terminated by PFSL and is no longer registered in the industry.

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.