News Release

For immediate release
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For further information, please contact:

Charles Toth

Vice President, Enforcement

(416) 943-4619

ctoth@mfda.ca

Mark Stott

Vice-President, Prairie Region

(403) 215-8329

mstott@mfda.ca

MFDA Hearing Panel approves settlement agreement with Jake Cadigal

July 10, 2019 (Toronto, Ontario) – A settlement hearing in the matter of Jake Florentino Cadigal (“Respondent”) was held yesterday in Winnipeg, Manitoba before a three-member Hearing Panel of the Prairie Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”).

The Hearing Panel approved the settlement agreement dated February 5, 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 fine in the amount of $15,000;
  • costs in the amount of $2,500;and
  • shall in future exercise due diligence to comply with MFDA Rules 2.1.4, 2.1.1 and the policies and procedures of any Member he is associated with.

In the Settlement Agreement, the Respondent admitted that:

  1. between March 2015 and October 2016, without the knowledge, authorization or approval of client LT, he signed the signature of client LT on nine account forms, thereby falsely representing that client LT was aware of and had approved the content of the forms and that she had authorized a redemption from the account when that was not the case, contrary to the policies and procedures of the Member and MFDA Rule 2.1.1; and
  2. between March 2015 and January 17, 2017, he was named in the will of his client LT as Executor of her estate which gave rise to a potential conflict of interest between the Respondent and client LT, which he failed to disclose to the Member or address by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to MFDA Rules 2.1.4 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 Winnipeg, Manitoba.

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.