Alberta advisor Keith Lorne Davis has been banned by the MFDA from conducting securities business.

Between 2002 and 2013, Davis was a mutual fund salesperson with WFG Financial Management.

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The regulator alleged that from 2009 to 2013, Davis borrowed $80,000 from a client, “thereby giving rise to a conflict of potential conflict of interest.” He used the money to open a tax preparation business, Davis and Associates, the MFDA found.

Davis didn’t get his firm’s permission to open an outside business, according to the MFDA and witness testimony. He also didn’t report that he’d borrowed money from a client.

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The MFDA alleges Davis interfered with the compliance process because on his 2013 disclosure forms, he didn’t tell his employers about his business.

Further, between 2010 and 2013, the MFDA alleged that Davis had “at least 17 blank or partially completed pre-signed account forms in respect of nine clients.”

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The disciplinary hearing was in Edmonton on September 28. In its Reasons for Decision, dated November 15, 2016, the MFDA sanctioned Davis with:

  • a permanent prohibition on the authority of the respondent to conduct securities related business while in the employ of or associated with any Member of the MFDA;
  • a fine in the amount of $50,000; and
  • costs in the amount of $10,000.

The MFDA’s full Reasons for Decision are available on its website.