January 17, 2017 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) has commenced disciplinary proceedings in respect of Jason Andrew Savoy (the “Respondent”). In its Notice of Hearing dated December 16, 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 about December 2013, the Respondent agreed to personally reimburse a client the deferred sales charge fees the client would incur on a transaction without the knowledge and approval of the Member, and then reneged on the agreement, thereby engaging in personal financial dealings with the client, contrary to MFDA Rule 2.1.1 and MFDA Policy No. 3.
Allegation #2: Between 2009 and 2014, the Respondent obtained and possessed 10 pre-signed client account forms in respect of 7 clients, contrary to the Member’s policies and procedures and MFDA Rules 1.1.2, 2.5.1, and 2.1.1.
Allegation #3: Between April 2007 and October 2013, the Respondent accepted cash deposits from 6 clients on 11 occasions, and used the cash deposits to purchase bank drafts to invest in mutual funds on the clients’ behalf, contrary to the Member’s policies and procedures and MFDA Rules 1.1.2, 2.5.1, and 2.1.1.
Allegation #4: Between October 2009 and August 2014, the Respondent delayed, at his discretion, the processing of 20 transactions in the accounts of 10 clients, thereby failing to process trades in client accounts in a timely manner, contrary to MFDA Rule 2.1.1, and subsections 9.1(1) and (2) and 10.2(1) and (2) of the National Instrument 81-102.
Allegation #5: Between September 2012 and 2014, the Respondent compensated 6 clients for fees incurred by the clients as a result of investment losses due to errors or trade delays caused by the Respondent, without the Member’s prior consent, contrary to the Member’s policies and procedures and MFDA Rules 2.11, 1.1.2, 2.5.1, and 2.1.1, and MFDA Policy No. 3.
Allegation #6: Between 2004 and 2013, the Respondent had and continued in a dual occupation by providing tax preparation services to 14 clients, which was not disclosed to and approved by the Member, contrary to the Member’s policies and procedures and MFDA Rules 1.2.1(c) (now MFDA Rule 1.3), 1.1.2, 2.5.1, and 2.1.1.
Allegation #7: Between July 2014 and November 2014, the Respondent made misleading statements during the Member’s investigation into his conduct when he falsely denied that he:
- had accepted cash from clients; and
- engaged in tax preparation services with clients,
thereby interfering with the ability of the Member to supervise his conduct, contrary to MFDA Rules 2.1.1.
Allegation #8: Between 2007 and 2013, the Respondent misled the Member in annual compliance questionnaires when he falsely represented to the Member that he:
- did not arrange for and maintain pre-signed forms;
- did not enter into financial settlements with clients that had not been approved by the Member; and
- had disclosed and sought approval for outside business activities,
thereby interfering with the ability of the Member to supervise his conduct, contrary to MFDA Rule 2.1.1.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA’s Atlantic Regional Council on March 16, 2017 at 10:00 a.m. (Atlantic), 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.
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 conducted business the Halifax, Nova Scotia, 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.