September 15, 2020 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) announced that it has issued a Notice of Settlement Hearing dated September 3, 2020 regarding the presentation, review and consideration of a proposed settlement agreement by a Hearing Panel of the MFDA’s Central Regional Council.
The settlement agreement will be between Staff of the MFDA and Keith Bates (“Respondent”) and involves matters for which the Respondent may be disciplined by a Hearing Panel pursuant to MFDA By-laws. The proposed settlement agreement concerns the allegation that the Respondent:
- on December 5, 2017, copied the signature page from an account form previously signed by the client and re-used the signature page to complete a new account form, and submitted the new account form to the Member for processing, contrary to MFDA Rule 2.1.1;
- between May 2014 and October 2018, altered and used to process transactions, 96 account forms in respect of approximately 92 clients, by altering information on the account forms without having the client initial the alterations, contrary to MFDA Rule 2.1.1;
- between May 2014 and October 2018, obtained, possessed, and in some instances, used to process transactions, 117 pre-signed account forms in respect of approximately 33 clients, contrary to MFDA Rule 2.1.1; and
- between approximately January 2018 and November 2018, held blank bank cheque books of 2 clients in a client file maintained by the Respondent and thereby failed to abide by the standard of conduct required of an Approved Person, contrary to MFDA Rule 2.1.1.
The settlement hearing will take place by electronic hearing on October 1, 2020 at 10:00 a.m. (Eastern), or as soon thereafter as the matter can be held. Members of the public who would like to obtain particulars should contact email@example.com.
MFDA settlement hearings are typically held in the absence of the public pursuant to section 20.5 of MFDA By-law No. 1 and Rule 15.2(2) of the MFDA Rules of Procedure. If the Hearing Panel accepts the settlement agreement, then the proceeding will become open to the public and a copy of the decision of the Hearing Panel and the settlement agreement will be made available at www.mfda.ca.
A copy of the Notice of Settlement Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Settlement Hearing, the Respondent in the Hamilton, Ontario 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.