Decision Notice - CIRO Hearing Panel Issues Reasons for Decision on Sanctions in the Matter of Paul Vincent Ongcapin Encarnacion and Mari Sophia Mendoza Encarnacion

TORONTO, Aug. 27, 2026 /CNW/ -- Following a sanctions hearing, in the matter of Paul Vincent Ongcapin Encarnacion and Mari Sophia Mendoza Encarnacion (the Respondents), held on June 17, 2026, a hearing panel of the Canadian Investment Regulatory Organization (CIRO) under the Mutual Fund Dealer Rules imposed the following sanctions:

Paul Encarnacion

1. a six-year suspension from acting in a registered capacity;
2. a fine of $300,000; and
3. disgorgement in the amount of $15,130.

Mari Encarnacion

1. a two-year suspension from acting in a registered capacity; and
2. a fine of $100,000.

The hearing panel also ordered the Respondents, jointly and severally, to disgorge $104,131 and pay costs of $35,000.

The sanctions decision, dated August 21, 2026, can be found at:

Re Encarnacion 2026 CIRO 26

In an earlier decision dated April 16, 2026, the hearing panel found that the Respondents:

1. received monies from a client, which gave rise to a material conflict of interest that they failed to identify, report to the Dealer Member or address in the best interests of the client; and
2. made false or misleading statements to the Dealer Member during its investigation.

The hearing panel also found that Paul Encarnacion was named the sole beneficiary of a client's will, which gave rise to a material conflict of interest that he failed to identify, report to the Dealer Member, or address in the best interests of the client.

The liability decision can be found at:

Re Encarnacion 2026 CIRO 13

The violations occurred while the Respondents conducted business with PFSL Investments Canada Ltd. in Mississauga, Ontario. They are not currently registered in the securities industry in any capacity.

The Canadian Investment Regulatory Organization (CIRO) is the pan-Canadian 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.ciro.ca.

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.

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SOURCE Canadian Investment Regulatory Organization (CIRO)

Media Inquiries: Ariel Visconti, Senior Corporate Communications and Public Affairs Specialist, [email protected], 416-526-8240