January 22, 2019 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) commenced a disciplinary proceeding in respect of Donald John McIntyre (“Respondent”) by Notice of Hearing dated November 16, 2017.
As the result of a settlement agreement entered into between Staff of the MFDA and the Respondent, the settlement hearing will take place on January 30, 2019, commencing at 9:00 a.m. (Central), or as soon thereafter as the matter can be heard, in the hearing room at the Delta Bessborough, 601 Spadina Crescent East, Saskatoon, Saskatchewan.
The subject matter of the proposed settlement agreement concerns matters for which the Respondent may be disciplined pursuant to ss. 20 and 24.1.1 of By-law No. 1 of the MFDA. In particular, the settlement agreement concerns allegations that the Respondent:
- between January 2010 and November 2015, recommended to approximately 423 clients that the clients concentrate all or a substantial portion of their investment holdings in precious metals sector funds, without adequately assessing the suitability of his investment recommendations on a client-by-client basis having regard to the essential Know-Your-Client (“KYC”) information relevant to each individual client, contrary to MFDA Rules 2.2.1</a> and 2.1.1;
- between January 2010 and November 2015, failed to accurately record the essential KYC information relevant to each client and to each order and account that he accepted, but instead recorded KYC information for each client that would be consistent with his investment recommendations to those clients to concentrate all or a substantial portion of the clients’ investment holdings in precious metals sector funds, contrary to MFDA Rules 2.2.1 and 2.1.1;
- between January 2010 and November 2015, failed to fully and adequately explain, and/or omitted to accurately explain the risks of investing in precious metals sector funds that he recommended to clients, thereby failing to present the investment recommendations to the clients in a fair and balanced manner, contrary to MFDA Rules 2.2.1 and 2.1.1;
- between April 2013 and November 2015, obtained and possessed three pre-signed client account forms in respect of two clients, contrary to MFDA Rule 2.1.1; and
- between December 2009 and January 2015, altered 19 account forms in respect of 14 clients by altering information on the account forms without obtaining client initials, contrary to MFDA Rule 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 Maklin, Saskatchewan 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 82,000 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.