January 20, 2017 (Toronto, Ontario) – A settlement hearing in the matter of Charles James White (the “Respondent”) was held on January 19, 2017 in Halifax, Nova Scotia before a three-member Hearing Panel of the Atlantic Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”).
The Hearing Panel accepted the settlement agreement (the “Settlement Agreement”) between Staff of the MFDA and the Respondent, as a consequence of which the following penalties and costs were imposed:
- suspension from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member for a period of two (2) months commencing from the date of the final Order;
- permanent prohibition from engaging in any leveraging activities with clients, including recommending or applying for investment loans for clients;
- a fine in the amount of $5,000;
- costs in the amount of $5,000; and
- shall in the future comply with MFDA Rules 2.1.1 and 2.2.1.
In the Settlement Agreement, the Respondent admitted that:
- between September and December 2007, he misrepresented, failed to fully and adequately explain, or omitted to explain, the risks, benefits, material assumptions, costs and features of a leveraged investment strategy that he recommended and implemented in the accounts of two clients, thereby failing to ensure that the leveraged investment strategy was suitable for the clients and in keeping with their investment objectives, contrary to MFDA Rules 2.1.1 and 2.2.1; and;
- in about September 2007, he failed to ensure that the leveraged investment strategy he recommended and implemented in the accounts of two clients were suitable for the clients and in keeping with their investment objectives, having regard to the clients’ KYC information and financial circumstances including, but not limited to, the clients’ risk tolerance, investment knowledge, ability to afford the costs associated with the investment loans, and ability to withstand investment losses, contrary to MFDA Rules 2.1.1 and 2.2.1.
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.