MFDA Hearing Panel approves settlement agreement with Kathleen Caswell
July 27, 2018 (Toronto, Ontario) – A settlement hearing in the matter of Kathleen Louise Caswell (“Respondent”) was held yesterday in Toronto, Ontario before a Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”).
The Hearing Panel approved the settlement agreement (“Settlement Agreement”) between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were imposed on the Respondent:
- a prohibition from conducting securities related business in any capacity while in the employ of or associated with a MFDA Member for a period of two months;
- a fine payable in the amount of $2,500; (“Fine”)
- costs payable in the amount of $2,500; (“Costs”)
- payment of the Fine and Costs shall be made to and received by MFDA Staff in certified funds as follows:
- $1,000 shall be paid upon acceptance of the Settlement Agreement by the Hearing Panel;
- $400 on or before August 31, 2018;
- $400 on or before September 28, 2018;
- $400 on or before October 31, 2018;
- $400 on or before November 30, 2018;
- $400 on or before December 31, 2018;
- $400 on or before January 31, 2019;
- $400 on or before February 28, 2019;
- $400 on or before March 29, 2019;
- $400 on or before April 30, 2019;
- $400 on or before May 31, 2019;
- if she fails to make any of the payments described above then:
- any outstanding balance of the Fine and Costs shall immediately become due and payable to the MFDA;
- she shall continue to be prohibited from conducting securities related business while in the employ of or associated with a Member of the MFDA until such time as the total amount outstanding of the Fine and Costs owed is paid to the MFDA, pursuant to s. 24.3.13(c) of MFDA By-law No. 1; and
- shall in the future comply with MFDA Rule 2.1.1.
In the Settlement Agreement dated February 26, 2018, the Respondent admitted that:
- between 2010 and September 2016, she obtained, possessed, and in nine instances, used to process transactions, 37 pre-signed account forms in respect of 27 clients, contrary to MFDA Rule 2.1.1; and
- between May 2010 and December 2015, she falsified, and in eight instances, used to process transactions, 12 account forms in respect of ten clients by altering information on the account forms without having the clients initial the alterations, 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 Collingwood, Ontario.
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 82,000 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.