For further information, please contact:
For immediate release
MFDA announces disciplinary proceeding in respect of International Capital Management Inc. and John Paul Sanchez
January 8, 2016 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) has commenced disciplinary proceedings in respect of International Capital Management Inc. and John Paul Sanchez (the "Respondents"). In its Notice of Hearing dated December 17, 2015, 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: Between June 2012 and September 2013, while International Capital Management Inc. (“ICM”) was designated in Early Warning, ICM contravened the early warning requirements set out in MFDA Rule 3.4.2 by making payments without prior written approval from the MFDA for:
(a) salary and override payments to Officers of ICM from June 2012 to August 2013; (b) payments to I-Boss from June 2012 to December 2012; and (c) a payment to HoldCo in March 2013.
all of which is contrary to MFDA Rules 3.4.2(b)(iv)(C).
Allegation #2: Between June 2012 and September 2013, John Paul Sanchez (“Sanchez”) failed to make appropriate queries or inform himself as to ICM’s adherence to the Early Warning rules and requirements, contrary to MFDA Rule 2.5.2(b).
The first appearance in this proceeding will take place by teleconference before a Hearing Panel
of the MFDA’s Central Regional Council on February
2016 at 12:00 p.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 Respondents carried on business in the Provinces of Alberta and Ontario.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 101 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.
DM 460879 v1