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MFDA announces disciplinary proceeding in respect of Christopher Davies

For further information, please contact:

Charles Toth
Vice President, Enforcement

MFDA announces disciplinary proceeding in respect of Christopher Davies

December 10, 2019 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) has commenced disciplinary proceedings in respect of Christopher John Davies (“Respondent”). In its Notice of Hearing dated November 18, 2019 (“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 February 2014 and July 2017, the Respondent misappropriated or failed to account for at least $434,252.35 received from four clients, contrary to the Member’s policies and procedures, and MFDA Rules 2.1.1, 1.1.2 and 2.5.1.

Allegation #2: In or about April 2, 2014, the Respondent solicited or received $25,000 from two clients to make a joint investment with the clients in an unapproved investment outside the Member, thereby:

  1. engaging in securities related business that was not carried on for the account of the Member and through the facilities of the Member, contrary to the Member’s policies and procedures, and MFDA Rules 1.1.1, 2.1.1, 1.1.2, and 2.5.1; or
  2. engaging in personal financial dealings with the clients, which gave rise to a conflict or potential conflict of interest which the Respondent failed to disclose to the Member, or failed to address by the exercise of responsible business judgment influenced only by the best interests of the clients, contrary to the Member’s policies and procedures, and MFDA Rules 2.1.4, 2.1.1, 1.1.2, and 2.5.1.

Allegation #3: Between May 2015 and July 2017, the Respondent entered false or misleading notes regarding his communications with clients relating to trades on the Member’s back office system, contrary to MFDA Rules 2.1.1, 1.1.2 and 5.1(b).

Allegation #4: Commencing in or about August 2017, the Respondent made false or misleading statements to the Member during the course of an investigation into his conduct, contrary to the Member’s policies and procedures, and MFDA Rules 2.1.1, 2.5.1 and 1.1.2.

Allegation #5: Commencing on or about November 29, 2018, the Respondent failed to cooperate with an investigation by Staff of the MFDA into his conduct, contrary to section 22.1 of MFDA By-law No. 1.

The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA’s Central Regional Council on January 14, 2020 at 9:30 a.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. Members of the public who would like to listen to the teleconference should contact [email protected] to obtain particulars.

A copy of the Notice of Hearing is available on the MFDA website at ww.mfda.ca. During the period described in the Notice of Hearing, the Respondent carried on business in the St. Thomas and London, Ontario 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 81,000 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 715220