For further information, please contact:
For immediate release
Vice-President, Prairie Region
MFDA announces disciplinary proceeding in respect of Keith Davis
2016 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada
(“MFDA”) has commenced disciplinary proceedings in respect of Keith Lorne Davis (the “Respondent”). In its Notice of Hearing dated March 9, 2016, 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 October 1, 2009 and September 9, 2013 the Respondent engaged in personal financial dealings with a client by borrowing at least $80,000 from client MJ, thereby giving rise to a conflict or potential conflict of interest which the Respondent failed to address by the exercise of responsible business judgment influenced only by the best interests of the client, contrar y to MFDA Rules 2.1.4 and 2.1.1.
Allegation #2: Between October 1, 2009 and September 9, 2013, the Respondent had and continued in a dual occupation which was not disclosed to and approved by the Member, contrary to MFDA Rules 1.2.1(c) (formerly MFDA Rule 1.2.1(d)) and 2.1.1.
Allegation #3: Between February 1, 2013 and March 31, 2013, the Respondent misled the Member by falsely answering the Member’s Annual Compliance Certification when he stated that he did not engage in any dual occupations, thereby interfering with the ability of the Member to supervise his conduct and comply with its obligations under MFDA Rule 2.1.4, contrar y to MFDA Rules 1.1.2 and 2.1.1.
Allegation #4: Between January 1, 2010 and September 9, 2013, the Respondent obtained and maintained at least 17 blank or partially completed pre-signed account forms in respect of 9 clients, 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 Prairie Regional Council on April
2016 at 10:00 a.m. (Mountain), or as soon
thereafter as the matter can be heard, in order to schedule a date for the commencement of the
hearing on the merits and to address any other procedural matters. The first appearance will take
place in the hearing room at the MFDA offices, located at 800 - 6th Avenue S.W., Suite 850, Calgary, Alberta, and will be open to the public, except as may be required for the protection of confidential matters. The Hearing on the Merits will take place in Edmonton, Alberta at a time and venue to be announced.
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.
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