MFDA Hearing Panel issues Reasons for Decision in the matter of Byron Daues
March 27, 2018 (Toronto, Ontario) – A Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”) has issued its Reasons for Decision dated March 26, 2018 in connection with a disciplinary hearing held in Toronto, Ontario on November 29, 2017 in the matter of Byron Heinz Daues (“Respondent”).
In its Reasons for Decision, the Hearing Panel confirmed the sanctions imposed on the Respondent. In particular, the Respondent:
- is suspended from conducting securities related business for a period of one year;
- shall pay a fine in the amount of $25,000; and
- shall pay costs in the amount of $5,000.
In the Agreed Statement of Facts dated November 14, 2017, the Respondent admitted that:
- between August 21, 2014 and March 1, 2015, he engaged in securities related business in respect of three (3) clients when he was not registered to engage in these activities, contrary to MFDA Rule 2.1.1;
- on or about March 2, 2015, he submitted account forms to the Member to process transactions in respect of three (3) clients which concealed that he had engaged in securities related business when he was not registered to engage in these activities, contrary to MFDA Rule 2.1.1;
- in August 2012, he failed to ensure that investment recommendations he made to client AR were suitable for her having regard to the client’s relevant “Know-Your-Client” factors, including the client’s age, time horizon and investment objectives, contrary to MFDA Rules 2.2.1 and 2.1.1; and
- commencing on May 10, 2015, he misled Staff of the MFDA during an investigation into his conduct, thereby failing to cooperate with the investigation into his activities, contrary to section 22 of MFDA By-law No. 1 and MFDA Rule 2.1.1.
Copies of the Reasons for Decision and Agreed Statement of Facts are available on the MFDA website at www.mfda.ca. During the period described in the Reasons for Decision, the Respondent conducted business in the Courtice, 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 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.