MFDA fines, bans rep for one year for unauthorized discretionary trading

An MFDA hearing panel has fined and banned a dealing representative for one year for falsifying client documents and engaging in discretionary trading when he was not registered to do so.

Sebastian Eduardo Encalada, who was registered in Ontario and working as a dealing representative with TD Investment Services Inc. at the time of his misconduct, was fined $5,000.

He admitted to opening an account for an individual and processing 18 transactions between March and October 2015, “without the individual’s knowledge or authorization,” the MFDA says in its Reasons for Decision, dated April 30.

As well, Encalada admitted to signing “the individual’s signature or initials on two account forms” so he could open the account and complete the transactions, says the MFDA.

A third allegation related to Encalada potentially “qualifying for a bonus or other compensation through a branch incentive program” was dropped, the MFDA says. The reason for that was the respondent stopped working in September 2015 due to “serious” medical issues. As a result, the SRO explains, Encalada wasn’t eligible for bonuses or other compensation.

Encalada must also pay costs in the amount of $5,000, and will be suspended “without further notice or order of the hearing panel” if he fails to comply with his ban.

Staff

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