CIRO hearing panel finds Ann Reid liable and sets date for sanctions hearing

TORONTO, Dec. 27, 2023 /CNW/ - Following a disciplinary hearing held on April 26-27, June 26, 2023 and August 10, 2023, in Toronto, Ontario, a hearing panel of the Canadian Investment Regulatory Organization (CIRO) found that Ann Reid engaged in conduct contrary to the MFDA Rules.

The hearing panel's reasons for decision on liability, dated December 13, 2023, are available at:

Re Reid 2023 CIRO 41

Specifically, the hearing panel found that the respondent committed the following violations:

1. Between January 2016 and September 2017, the Respondent accepted a power of attorney for property from client MW, contrary to the Member's policies and procedures and MFDA Rules 2.3.1, 2.1.1, and 1.1.2 (as it relates to MFDA Rule 2.5.1).
2. Between April 2016 and September 2017, the Respondent accepted an appointment to act as executor and trustee of client MW's estate, and between March 2018 and July 2020 accepted an appointment to act as co-executor and co-trustee of client MW's estate, contrary to the Member's policies and procedures and MFDA Rules 2.3.1, 2.1.1, and 1.1.2 (as it relates to MFDA Rule 2.5.1).
3. The Respondent failed to disclose to the Member or otherwise address by the exercise of responsible business judgment influenced only by the best interests of the client, conflicts or potential conflicts of interest that arose between her and client MW when she became aware:
   1. 1. between January 2016 and September 2017 that she was or would be appointed as a power of attorney for property of client MW;
      2. between January 2016 and September 2017 that she was or would be appointed as an executor and trustee of client MW's estate;
      3. between March 2018 and July 2020 that she was or would be appointed as a co-executor and co-trustee of client MW's estate; and
      4. between January 2016 and July 2020 that she was or would be designated as a beneficiary of client MW's estate, contrary to the Member's policies and procedures and MFDA Rules 2.1.4, 2.1.1, and 1.1.2 (as it relates to MFDA Rule 2.5.1).
4. Between April 2016 and November 2019, the Respondent provided false or misleading responses to questions on compliance information forms that she submitted to the Member, contrary to MFDA Rule 2.1.1.
5. Between December 2019 and January 2020, the Respondent borrowed monies from client ME, which gave rise to a conflict or potential conflict of interest which the Respondent failed to disclose to the Member or otherwise ensure was addressed by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to the Member's policies and procedures and MFDA Rules 2.1.4, 2.1.1, and 1.1.2 (as it relates to MFDA Rule 2.5.1).
6. Between January 2018 and May 2018, the Respondent obtained, possessed, and in some instances used to process transactions, 18 pre-signed account forms in respect of 7 clients, contrary to MFDA Rule 2.1.1.

A sanctions hearing has been scheduled before the hearing panel.

The sanctions hearing is open to the public unless the hearing panel orders otherwise. The decision of the hearing panel will be made available at www.ciro.ca.

Sanctions Hearing Date: February 5, 2024, at 3:00 p.m. (Eastern time)

Location: Toronto, Ontario (via videoconference)

Members of the public who would like to obtain further particulars should fill out this questionnaire.

During the period described in the Notice of Hearing, Ann Reid conducted business in the Mississauga and Toronto, Ontario area.

All information about disciplinary proceedings relating to current and former member firms and individual registrants under the Investment Dealer and Partially Consolidated Rules (for investment dealers), the Mutual Fund Dealer Rules (for mutual fund dealers) and the Universal Market Integrity Rules (UMIR) is available on CIRO's website.

Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by CIRO-regulated investment firms is available free of charge through the AdvisorReport service. Information on how to make dealer, advisor or marketplace-related complaints is available by calling 1-877-442-4322.

CIRO investigates possible misconduct by its member firms and individual registrants. It can bring disciplinary proceedings which may result in sanctions including fines, suspensions, permanent bars, expulsion from membership, or termination of rights and privileges for individuals and firms.

The Canadian Investment Regulatory Organization (CIRO) is the national self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada's debt and equity marketplaces. CIRO is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians' trust in financial regulation and the people managing their investments. For more information, visit www.ocri.ca.

SOURCE Canadian Investment Regulatory Organization (CIRO)