September 25, 2019 (Toronto, Ontario) – A settlement hearing in the matter of David Michael Gordon (“Respondent”) was held on September 23, 2019 in Vancouver, British Columbia before a three-member Hearing Panel of the Pacific Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”).
The Hearing Panel approved the settlement agreement dated July 31, 2019 (“Settlement Agreement”) between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were imposed on the Respondent:
- a permanent prohibition from conducting securities related business in any capacity while in the employ or associated with an MFDA Member;
- a fine in the amount of $25,000; (“Fine”);
- costs in the amount of $2,500 (“Costs”);
- payment of the Fine and Costs shall be made to and received by MFDA Staff in certified funds as follows:
- $15,000 (Fine) upon acceptance of the Settlement Agreement;
- $2,500 (Costs) upon acceptance of the Settlement Agreement;
- $5,000 (Fine) on or before March 31, 2020; and
- $5,000 (Fine) on or before September 30, 2020.
In the Settlement Agreement, the Respondent admitted that:
- between 2009 and May 2016, he failed to ensure that an investment recommendation he made to at least six clients to invest in precious metals sector funds was suitable having regard to the clients’ relevant Know-Your-Client factors including their age, employment status, investment objectives, investment knowledge, risk tolerance, and time horizon, and the risks associated with concentrating their investment portfolio in precious metals sector funds, contrary to MFDA Rules 2.2.1 and 2.1.1; and
- between 2009 and May 2016, he failed to fully and adequately explain, or omitted to explain the risks and benefits of investing in precious metals sector funds to at least six clients, thereby failing to ensure that his recommendations were suitable for the clients and in keeping with their investment objectives, contrary to MFDA Rules 2.2.1 and 2.1.1.
A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, the Respondent conducted business in the Campbell River, British Columbia 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.