MFDA Hearing Panel approves settlement agreement with Hugh McDougall
July 27, 2018 (Toronto, Ontario) – A settlement hearing in the matter of Hugh Bruce McDougall (“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 fine payable in the amount of $5,000;
- costs payable in the amount of $2,500; and
- shall in the future comply with MFDA Rules 2.1.1, 2.1.4, 2.5.1 and 1.1.2.
In the Settlement Agreement dated May 8, 2018, the Respondent admitted that on December 5, 2016, he requested a loan in the amount of approximately $300,000 from client KF, thereby giving rise to a conflict of interest or a potential conflict of interest which he failed to address by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to the policies and procedures of the Member, and MFDA Rules 2.1.4, 1.1.2, 2.5.1, 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 carried on business in Burlington, 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.