October 3, 2017 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) has commenced disciplinary proceedings in respect of Sebastian Eduardo Encalada (“Respondent”). In its Notice of Hearing dated September 6, 2017 (“Notice of Hearing”), 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 March 2015 and October 2015, the Respondent opened an account for an individual and processed 18 transactions in the account, without the individual’s knowledge or authorization, thereby engaging in:
- discretionary trading, contrary to MFDA Rules 2.3.1 and 2.1.1; and/or
- conduct that increased the Respondent’s chances of qualifying for a bonus or other compensation through a branch incentive program, which gave rise to a conflict or potential conflict of interest with the interests of the individual that the Respondent failed to address by the exercise of responsible business judgment influenced only by the best interests of the individual, contrary to MFDA Rules 2.1.4 and 2.1.1.
Allegation #2: Between March 2015 and October 2015, the Respondent signed an individual’s signature or initials on two account forms in order open an account and process 18 transactions in the individual’s account, contrary to MFDA Rule 2.1.1.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA’s Central Regional Council on November 14, 2017 at 9:00 a.m. (Eastern), or as soon thereafter as the appearance can be held, in order 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.
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 575213 v1