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MFDA Hearing Panel approves settlement agreement with Donald McIntyre

For further information, please contact:

Mark Stott
Vice-President, Prairie Region
Charles Toth
Vice President, Enforcement

MFDA Hearing Panel approves settlement agreement with Donald McIntyre

January 31, 2019 (Toronto, Ontario) – A settlement hearing in the matter of Donald John McIntyre (“Respondent”) was held yesterday in Saskatoon, Saskatchewan before a three-member Hearing Panel of the Prairie Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”).

The Hearing Panel approved the settlement agreement dated January 25, 2019 (“Settlement Agreement”) between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were 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;
  • a fine in the amount of $10,000 (“Fine”);
  • costs in the amount of $5,000 (“Costs”);
  • payment of the Fine and Costs shall be made as follows:
    • $5,000 (Costs) upon acceptance of the Settlement Agreement;
    • $5,000 (Fine) on or before the last business day of the 3rd month following the date of the acceptance of the Settlement Agreement; and
    • $5,000 (fine) on or before the last business day of the 6th month following the date of the acceptance of the Settlement Agreement.

In the Settlement Agreement, the Respondent admitted that:

  1. between January 2010 and November 2015, he recommended to approximately 423 clients that the clients concentrate all or a substantial portion of their investment holdings in precious metals sector funds, without adequately assessing the suitability of his investment recommendations on a client-by-client basis having regard to the essential Know-Your-Client (“KYC”) information relevant to each individual client, contrary to MFDA Rules 2.2.1 and 2.1.1;
  2. between January 2010 and November 2015, he failed to accurately record the essential KYC information relevant to each client and to each order and account that he accepted, but instead recorded KYC information for each client that would be consistent with his investment recommendations to those clients to concentrate all or a substantial portion of the clients’ investment holdings in precious metals sector funds, contrary to MFDA Rules 2.2.1 and 2.1.1;
  3. between January 2010 and November 2015, he failed to fully and adequately explain, and/or omitted to accurately explain the risks of investing in precious metals sector funds that he recommended to clients, thereby failing to present the investment recommendations to the clients in a fair and balanced manner, contrary to MFDA Rules 2.2.1 and 2.1.1;
  4. between April 2013 and November 2015, he obtained and possessed three pre-signed client account forms in respect of two clients, contrary to MFDA Rule 2.1.1; and
  5. between December 2009 and January 2015, he altered 19 account forms in respect of 14 clients by altering information on the account forms without obtaining client initials, contrary to MFDA Rule 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 carried on business in the Maklin, Saskatchewan 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 81,000 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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