September 22, 2021 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) commenced a disciplinary proceeding in respect of Kimberley Mary Krahl (“Respondent”) by Notice of Hearing dated January 7, 2021, as amended on August 23, 2021.
A disciplinary hearing in this matter was held today in Toronto, Ontario by electronic hearing before a three-member Hearing Panel of the MFDA’s Central Regional Council. Prior to the hearing, the parties filed an Agreed Statement of Facts dated August 26, 2021 (“Agreed Statement of Facts”), in which the Respondent admitted to facts constituting contraventions of MFDA By-laws, Rules or Policies, for which the Respondent could be penalized by a Hearing Panel pursuant to section 24.1 of MFDA By-law No. 1. In particular, the Respondent admitted that:
- between July 2014 and 2016, she failed to disclose or obtain approval with respect to all material aspects of an outside activity, contrary to the Member’s policies and procedures and MFDA Rules 1.2.1(c) (now Rule 1.3.2), 2.1.1, 2.5.1 and 1.1.2; and
- between 2014 and 2016, she engaged in personal financial dealings with a client which gave rise to a conflict or potential conflict of interest which the Respondent failed to disclose to the Member or otherwise address by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to the Member’s policies and procedures and MFDA Rules 2.1.4, 2.1.1, 2.5.1, and 1.1.2.
Following submissions from the parties concerning penalty, the Hearing Panel reserved its decision as to sanctions and advised that it will issue its decision along with written reasons in due course.
Copies of the Amended Notice of Hearing and the Agreed Statement of Facts are available on the MFDA website at www.mfda.ca. During the period described in the Agreed Statement of Facts, the Respondent carried on business in the Toronto, 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 80,000 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.