February 13, 2018 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) has commenced disciplinary proceedings in respect of Jeffrey Dunlop (“Respondent”). In its Notice of Hearing dated January 19, 2018, Staff of the MFDA alleges that the Respondent engaged in the following conduct contrary to the By-laws, Rules and/or Policies of the MFDA:
Allegation #1: On July 29, 2015, the Respondent processed two trades totaling approximately $468,423 in the accounts of client MC without the knowledge or authorization of client MC thereby engaging in discretionary trading, contrary to MFDA Rules 1.1.2, 2.5.1, 2.3.1(b) and 2.1.1.
Allegation #2: Between July 30, 2015 and October 22, 2015, in response to questioning from his Branch Manager, the Respondent falsely represented to the Branch Manager that client MC had authorized two trades totaling $468,423 and that client MC would be signing the relevant trade documents, thereby misleading the Member and interfering with its ability to supervise the Respondent’s conduct, contrary to MFDA Rule 2.1.1.
Allegation #3: Between about September 11, 2015 and October 22, 2015, the Respondent failed to report a complaint from client MC regarding unauthorized trading to the Member, contrary to MFDA Rules 1.4(b) and 2.1.1, and section 4 of MFDA Policy No. 6.
Allegation #4: Between about September 21, 2015 and October 3, 2015, the Respondent falsely represented to client MC, in response to a complaint from the client regarding two unauthorized trades, that the trades were being reversed by the Member, contrary to MFDA Rule 2.1.1.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA’s Central Regional Council on March 13, 2018 at 9:00 a.m. (Eastern), or as soon thereafter as the appearance can be held, to schedule a date for the commencement of the hearing on the merits and to address any other procedural matters. The appearance will be open to the public, except as may be required for the protection of confidential matters.
A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Hearing, the Respondent carried on business from a branch located in Etobicoke, Ontario.
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.