April 12, 2017 (Toronto, Ontario) – A Hearing Panel of the Prairie Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”) has issued its Reasons for Decision in connection with a settlement hearing held in Calgary, Alberta on March 21, 2017 in the matter of Gerard Van Schothorst (“Respondent”). The Reasons for Decision relate to the Hearing Panel’s acceptance of the settlement agreement (“Settlement Agreement”) entered into between the Respondent and Staff of the MFDA.
In its Reasons for Decision dated April 12, 2017, the Hearing Panel confirmed the sanctions imposed on the Respondent. In particular, the Respondent:
- shall pay a fine in the amount of $6,500 (“Fine”);
- shall pay costs in the amount of $2,500 (“Costs”); and
- the Fine and Costs shall be paid in nine (9) installments of $1,000, with the first installment to be paid on the date of the settlement hearing, and the remaining eight (8) installments payable on the last business days of the eight (8) months following the date of acceptance of the Settlement Agreement by the Hearing Panel;
- if the Respondent fails to make any of the installment payments described above when the installments become due, then without further notice to the Respondent, the Respondent shall summarily be suspended from conducting securities related business while in the employ of, or associated with, any MFDA Member until the full amount of the Fine has been paid;
- shall be prohibited from acting as a branch manager or in any supervisory capacity for a Member of the MFDA for a period of one (1) month commencing upon the date the Settlement Agreement is accepted by the Hearing Panel; and
- shall successfully complete the Branch Manager’s Course within six (6) months of the date the Settlement Agreement is accepted by the Hearing Panel.
Copies of the Reasons for Decision and the Settlement Agreement are available on the MFDA website at www.mfda.ca. During the period described in the Reasons for Decision, the Respondent carried on business in the Lethbridge, Alberta 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.