December 1, 2017 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) commenced a disciplinary proceeding in respect of Byron Heinz Daues (“Respondent”) by Notice of Hearing dated March 24, 2017 (“Notice of Hearing”).
The hearing of this matter on its merits took place on November 29, 2017 in Toronto, Ontario before a three-person Hearing Panel of the MFDA’s Central Regional Council. Prior to the hearing, the parties filed an Agreed Statement of Facts in which the Respondent admitted to facts constituting contraventions of MFDA By-laws, Rules or Policies, for which he could be penalized by a Hearing Panel pursuant to section 24.1 of MFDA By-law No. 1.
In particular, the Respondent admitted that:
- between August 21, 2014 and March 1, 2015, he engaged in securities related business in respect of three (3) clients when he was not registered to engage in these activities, contrary to MFDA Rule 2.1.1;
- on or about March 2, 2015, he submitted account forms to the Member to process transactions in respect of three (3) clients which concealed that he had engaged in securities related business when he was not registered to engage in these activities, contrary to MFDA Rule 2.1.1;
- in August 2012, he failed to ensure that investment recommendations he made to client AR were suitable for her having regard to the client’s relevant “Know-Your-Client” factors, including the client’s age, time horizon and investment objectives, contrary to MFDA Rules 2.2.1 and 2.1.1; and
- commencing on May 10, 2015, he misled Staff of the MFDA during an investigation into his conduct, thereby failing to cooperate with the investigation into his activities, contrary to section 22 of MFDA By-law No. 1 and MFDA Rule 2.1.1.
Following submissions from the parties, the Hearing Panel imposed the following sanctions on the Respondent and advised that it will issue written reasons in due course:
- a suspension from conducting securities related business for a period of one (1) year;
- shall pay a fine in the amount of $25,000; and
- shall pay costs in the amount of $5,000.
Copies of the Notice of Hearing and Agreed Statement of Facts are available on the MFDA website at www.mfda.ca. During the period described in the Notice of Hearing, the Respondent conducted business in the Courtice, Ontario area.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its Members and their approximately 83,000 Approved Persons with a mandate to protect investors and the public interest. For more information about the MFDA’s complaint and enforcement processes, as well as links to ‘Check an Advisor’ and other Investor Tools, visit the For Investors page on the MFDA website.