December 7, 2016 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) commenced a disciplinary proceeding in respect of Gerard Van Schothorst (the “Respondent”) by Notice of Hearing dated September 21, 2016 (the “Notice of Hearing”).
As specified in the Notice of Hearing, the first appearance in this proceeding took place on December 5, 2016 by teleconference before a Hearing Panel of the MFDA’s Prairie Regional Council.
As the result of a settlement agreement entered into between Staff of the MFDA and the Respondent, the settlement hearing in this proceeding will take place on March 21, 2017, commencing at 10:00 a.m. (Mountain), or as soon thereafter as the matter can be heard, in the hearing room at the offices of the MFDA, located at 800 – 6th Avenue S.W., Suite 850, Calgary, Alberta.
The proposed settlement agreement concerns allegations that the Respondent:
- between August 27, 2012 and January 21, 2015, obtained, possessed and in some instances used to process transactions, five (5) pre-signed account forms in respect of two (2) clients, contrary to MFDA Rule 2.1.1;
- between August 27, 2012 and January 21, 2015, acting in his capacity as branch manager, reviewed and approved the use of five (5) pre-signed account forms, contrary to MFDA Rules 2.5.5(f) and 2.1.1.
MFDA settlement hearings are typically held in the absence of the public pursuant to section 20.5 of MFDA By-law No. 1 and Rule 15.2(2) of the MFDA Rules of Procedure. If the Hearing Panel accepts the settlement agreement, then the proceeding will become open to the public and
a copy of the decision of the Hearing Panel and the settlement agreement will be made available at www.mfda.ca.
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 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.