September 3, 2021 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) commenced a disciplinary proceeding in respect of Derek Jarod Targerson (“Respondent”) by Notice of Hearing dated January 4, 2021.
A disciplinary hearing in this matter was held on September 1, 2021 by electronic hearing in Swift Current, Saskatchewan before a three-member Hearing Panel of the MFDA’s Prairie Regional Council. Prior to the hearing, the parties filed an Agreed Statement of Facts dated April 11, 2021 (“Agreed Statement of Facts”), in which the Respondent admitted to facts constituting contraventions of MFDA By-laws, Rules or Policies, for which the Respondent could be penalized by a Hearing Panel pursuant to section 24.1 of MFDA By-law No. 1. In particular, the Respondent admitted that:
- on or about August 29, 2017, signed a client’s signature on 2 account forms and submitted the forms to the Member for processing, contrary to MFDA Rule 2.1.1; and
- on or about August 29, 2017, created a meeting note that falsely stated that the Respondent had met with and obtained the signatures of a client on account forms, when the Respondent had not met with the client, contrary to MFDA Rule 2.1.1.
Following submissions from the parties with respect to penalty, the Hearing Panel imposed the following sanctions on the Respondent and advised that it will issue written reasons in due course:
- a fine (“Fine”) in the amount of $7,500;
- costs (“Costs”) in the amount of $2,500; and
- the Fine and Costs are to be paid on a time schedule worked out by the parties.
Copies of the Notice of Hearing and the Agreed Statement of Facts are available on the MFDA website at www.mfda.ca. During the period described in the Agreed Statement of Facts, the Respondent carried on business in the Swift Current, 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 80,000 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.