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MFDA Hearing Panel reserves judgment on penalty in the matter of Robert Phillips

For further information, please contact:

Charles Toth
Vice President, Enforcement

MFDA Hearing Panel reserves judgment on penalty in the matter of Robert Phillips

December 12, 2016 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) commenced a disciplinary proceeding in respect of Robert Kenneth Phillips (the “Respondent”) by Notice of Hearing (the “Notice of Hearing”) dated June 17, 2016.

A disciplinary hearing in this matter took place on December 9, 2016 in Calgary, Alberta, before a three-person Hearing Panel of the MFDA’s Prairie Regional Council. After hearing submissions from Staff of the MFDA with respect to misconduct, the Hearing Panel found that the following allegations concerning the Respondent had been established:

Allegation #1: Between June 2010 and December 2014, he recommended, sold, referred, or facilitated the sale of an exempt security to at least 43 clients outside of the Member, thereby engaging in:

  1. securities related business that was not carried on for the account and through the facilities of the Member, contrary to MFDA Rules 1.1.1 and 2.1.1; and/or
  2. a referral arrangement which did not comply with sections 13.7 to 13.10 of National Instrument 31-103.

Allegation #3: Commencing in April 2015, he failed to cooperate with an investigation conducted by MFDA Staff, contrary to section 22.1 of MFDA By-law No. 1 and MFDA Rule 2.1.1.

After hearing submissions from Staff of the MFDA with respect to penalty, the Hearing Panel reserved its decision and advised that it will issue its decision and written reasons in due course.

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 Calgary, 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.

DM 515392