MFDA announces disciplinary proceeding in respect of Byron Daues
April 25, 2017 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) has commenced disciplinary proceedings in respect of Byron Heinz Daues (“Respondent”). In its Notice of Hearing dated March 24, 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 August 21, 2014 and March 1, 2015, the Respondent engaged in securities related business in respect of three clients when he was not registered to engage in these activities, contrary to MFDA Rule 2.1.1.
Allegation #2: On or about March 2, 2015, the Respondent submitted account forms to the Member to process transactions in respect of three clients which concealed that the Respondent had engaged in securities related business when he was not registered to engage in these activities, contrary to MFDA Rule 2.1.1.
Allegation #3: In August 2012, the Respondent 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.
Allegation #4: Commencing on May 10, 2015, the Respondent misled Staff of the MFDA during an investigation into his conduct, thereby failing to cooperate with the investigation, contrary to section 22 of MFDA By-law No. 1 and 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 May 23, 2017 at 10:30 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.
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 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 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.