April 17, 2018 (Toronto, Ontario) – A Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”) has issued its Reasons for Decision dated April 16, 2018 in connection with a disciplinary hearing held in Toronto, Ontario on March 6, 2018 in the matter of Sean William Maxwell (“Respondent”).
In its Reasons for Decision, the Hearing Panel confirmed the sanctions imposed on the Respondent. In particular, the Respondent:
- is permanently prohibited from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member;
- has been ordered to pay a fine in the amount of $15,000; in respect of allegations #1, #2 and #3 in the Notice of Hearing;
- has been ordered to pay a fine in the amount of $50,000 in respect of allegation #4 in the Notice of Hearing; and
- has been ordered to pay costs in the amount of $5,000.
At the hearing, the Panel made the following findings of misconduct against the Respondent:
Allegation #1: On March 9, 2015, he engaged in discretionary trading when he processed a trade in the account of a client and used his discretion to determine the amount and timing of the trade, contrary to MFDA Rules 2.3.1 and 2.1.1.
Allegation #2: On March 9, 2015, he created a note on the Member’s back office system which falsely indicated that he spoke with a client and obtained the client’s authorization for a trade, contrary to MFDA Rule 2.1.1.
Allegation #3: Between February 6, 2015 and March 5, 2015, he failed to create a record of client trade instructions with respect to four trades that he processed in the account of a client, contrary to the Member’s policies and procedures, and MFDA Rules 1.1.2, 2.1.1, 2.10 and 5.1(b).
Allegation #4: Commencing in about June 2016, he failed to cooperate with MFDA Staff during the course of an investigation into his conduct, contrary to section 22.1 of MFDA By-law No. 1.
A copy of the Reasons for Decision is available on the MFDA website at www.mfda.ca. During the period described in the Reasons for Decision, the Respondent conducted business in the Guelph, 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 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.