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MFDA Hearing Panel accepts settlement agreement with James Curtis

For further information, please contact:

Charles Toth
Vice President, Enforcement

MFDA Hearing Panel accepts settlement agreement with James Curtis

November 15, 2017 (Toronto, Ontario) – A settlement hearing in the matter of James Edward Curtis (“Respondent”) was held today in Toronto, Ontario before a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”).

The Hearing Panel accepted the settlement agreement (“Settlement Agreement”) between Staff of the MFDA and the Respondent, as a consequence of which the following sanction was imposed on the Respondent:

  • a permanent prohibition from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member.

In the Settlement Agreement, the Respondent admitted that:

  1. between about January and April 2014, he failed to follow a series of compliance directives from the Member requiring the Respondent to reassess the suitability of his recommendations to clients to hold 100% of their investments in a single precious metal sector fund and, where appropriate, make recommendations to reduce the clients’ concentration in the fund, contrary to MFDA Rules 2.2.1 and 2.1.1.; and
  2. between about January and April 2014, he arranged for at least 75 clients to complete updated Know-Your-Client forms which increased the clients’ risk tolerance, in order to ensure that the clients’ Know-Your-Client information matched his recommendations to hold 100% of their investments in a single precious metal sector fund, contrary to MFDA Rules 2.2.1 and 2.1.1.

A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, the Respondent conducted business in the Kitchener-Waterloo, 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.

DM 583743