WHEREAS on July 30, 2018, the Mutual Fund Dealers Association of Canada (the “MFDA”) issued a News Release announcing that it proposes to hold a hearing to consider whether, pursuant to section 24.4 of By-law No. 1, a hearing panel of the Central Regional Council (the “Hearing Panel”) of the MFDA should accept the settlement agreement entered into between Staff of the MFDA (“Staff”) and the Respondent, Graham Allan Coltart (the “Respondent”)
AND WHEREAS the Respondent entered into a settlement agreement with Staff, dated July 23, 2018 (the “Settlement Agreement”), in which the Respondent agreed to a proposed settlement of matters for which the Respondent could be disciplined pursuant to ss. 20 and 24.1 of By-law No. 1;
AND WHEREAS the Hearing Panel is of the opinion that the Respondent
- between June 2011 and September 2016, the Respondent falsified, and used to process transactions, 12 account forms in respect of 8 clients by altering information on the account forms without having the client initial the alterations, contrary to MFDA Rule 2.1.1;
- between May 2011 and September 2016, the Respondent obtained, possessed, and in some instances, used to process transactions, 41 pre-signed account forms in respect of 11 clients, contrary to MFDA Rule 2.1.1; and
- in or about April 2016, the Respondent, without the prior approval of the Member, directly reimbursed a client for deferred sales charge fees that the client incurred, thereby engaging in personal financial dealings with a client, contrary to the Member’s policies and procedures and MFDA Rules 1.1.2, 2.5.1, 2.1.4, 2.1.1, and MFDA Policy No. 3.
IT IS HEREBY ORDERED THAT the Settlement Agreement is accepted, as a consequence of which:
- The Respondent shall be prohibited from conducting securities related business in any capacity in the employ of or associated with a Member of the MFDA for a period of 6 months, pursuant to section 24.1.1(e) of By-law No. 1.
- The Respondent shall pay costs in the amount of $2,500 in certified funds, pursuant to section 24.2 of By-law No. 1.
- The Respondent shall in the future comply with MFDA Rules 2.1.1, 1.1.2, 2.5.1, 2.1.4, 2.1.1, and MFDA Policy No. 3.
Martin L. FriedlandMartin L. FriedlandChair
Jeff PageJeff PageIndustry Representative
Cheryl HamiltonCheryl HamiltonIndustry Representative