November 2, 2016 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) has commenced disciplinary proceedings in respect of Jack L. Comeau (the “Respondent”). In its Notice of Hearing dated October 31, 2016, 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: In February 2010, the Respondent prepared and delivered a written communication to client JP which was not approved by the Member, and contained statements or conclusions with respect to the risks, features and rates of return of exempt market products he was recommending to the client that were misleading, unwarranted or exaggerated, or that failed to identify the material assumptions made in arriving at those statements or conclusions, contrary to MFDA Rules 2.7, 2.8, 1.1.2, and 2.1.1.
Allegation #2: In May 2011, the Respondent prepared and delivered a written communication to clients, including client KP, with respect to an exempt product he was recommending to clients, which communication had not been approved by the Member and failed to describe the potential risks of the investment to the clients, contrary to MFDA Rules 2.7, 2.8, 1.1.2 and 2.1.1.
Allegation #3: Between 2008 and 2010, the Respondent engaged in securities related business that was not carried on for the account and through the facilities of the Member by selling, recommending, referring or facilitating the sale of approximately $2.25 million of an exempt market product to at least 27 clients, contrary to MFDA Rules 1.1.1, 2.4.2, and 2.1.1.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA’s Prairie Regional Council on December 5, 2016 at 11:00 a.m. (Mountain), or as soon thereafter as the appearance can be held, to schedule a date for the commencement of the hearing on the merits and to address any other procedural matters. The appearance will be open to the public, except as may be required for the protection of confidential matters.
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.