September 5, 2017 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) has commenced disciplinary proceedings in respect of Larry Leslie Williams (“Respondent”). In its Notice of Hearing dated August 16, 2017, Staff of the MFDA alleges that the Respondent engaged in the following conduct contrary to the By-laws, Rules and/or Policies of the MFDA:
Allegation #1: Between March 6, 2015 and August 5, 2015, the Respondent conducted securities related business that was not carried on for the account of the Member or processed through the facilities of the Member by organizing and participating in an investment club with clients of the Member, contrary to MFDA Rules 1.1.1, 1.1.2, 2.5.1 and 2.1.1, and the policies and procedures of the Member.
Allegation #2: Between March 6, 2015 and August 5, 2015, the Respondent conducted securities related business that exceeded the limits of his registration contrary to the Securities Act (British Columbia), thereby engaging the jurisdiction of the Regional Council to impose penalties pursuant to section 24.1.1(h) of MFDA By-law No. 1 and the standard of conduct set out in MFDA Rule 2.1.1.
Allegation #3: Between March 6, 2015 and August 5, 2015, the Respondent co-mingled his money with clients’ money in an investment account opened off the books and records of the Member, thereby giving rise to a conflict of interest which the Respondent failed to address by the exercise of responsible business judgment influenced only by the best interests of the clients, contrary to MFDA Rules 2.1.4 and 2.1.1.
The first appearance in this proceeding will be held by teleconference before a Hearing Panel of the MFDA’s Pacific Regional Council on October 11, 2017 at 10:30 a.m. (Pacific), or as soon thereafter as the appearance can be held, in order to schedule a date for the commencement of the hearing on the merits and to address any other procedural matters. The first appearance will take place in the hearing room at the MFDA offices, located at 650 West Georgia Street, Suite 1220, Vancouver, British Columbia, and will be open to the public, except as may be required for the protection of confidential matters. The hearing on the merits will take place in Vancouver, British Columbia at a time and venue to be announced.
A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Hearing, the Respondent carried on business in the Surrey, British Columbia 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.