Editor’s Note: This story has since been updated with additional clarification from the MFDA ruling and comment from Shaun Collier.
The mayor of Ajax has been fined by the Mutual Fund Dealers Association of Canada (MFDA) after the association alleges he altered the financial documents of his clients, Global News has learned.
The MFDA, a self-regulatory body overseeing mutual fund dealers, launched an investigation into allegations of financial misconduct against Shaun Collier. The association claims Collier altered information on his clients’ forms during his time as a mutual funds broker.
But the MFDA noted in its ruling that, “There is no evidence that the respondent received any benefit from the conduct … beyond the commissions or fees he would ordinarily be entitled to receive had the transactions been carried out in the proper manner,” as reported by DurhamRegion.com.
“There is no evidence of client loss or lack of authorization for the underlying transactions.”
Following its investigation, the MFDA began disciplinary proceedings against Collier in December 2018.
In a release dated Dec. 28, 2018 and posted on the MFDA website, the association outlines its allegations against Collier, which include a claim that he “obtained, possessed, and in some instances, used to process transactions, 12 pre-signed account forms in respect of six clients” between March 2006 and February 2017.
The release also alleges Collier “altered, and used to process transactions, seven account forms in respect of four clients by altering information on the account forms without having the clients initial the alterations” between September 2009 and May 2011.
As a result of the association’s disciplinary proceedings, Collier has been fined $13,000 by the MFDA and is now required to pay $2,500 in costs.
Collier told DurhamRegion.com that the alterations were done with his clients’ consent and were minor in nature, such as checking a box and then not having the client initial the change.
“During a routine branch audit of my office in 2017, transactions were found not to be carried out in the proper manner. Throughout the investigative process, I worked co-operatively with the MFDA, and at no time was my licence ever suspended. Further, I was free to operate my business without restriction,” he said in a statement sent to the media outlet.
“The settlement makes clear that there was no financial benefit from the conduct, no client loss or lack of authorization for the transactions. All clients were interviewed and all remained my clients after the audit findings. In the 21 years I practised, there was never a complaint or any infractions.
“By entering into this agreement, I saved the MFDA the time, resources, and expenses associated with conducting a full hearing.”
Collier also told DurhamRegion.com that the MFDA made changes to its regulations in 2015 and most of the charges were dated before then.
Collier worked as a mutual fund salesperson from 2000 until he resigned because he became mayor, the outlet reported.
DurhamRegion.com also reported that the MFDA noted the company Collier worked for contacted clients to see if there was any unauthorized trading, and no clients expressed concerns.
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