October 25, 2019 (Toronto, Ontario) – A settlement hearing in the matter of Jerome Thomas Bates (“Respondent”) was held today 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 9, 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
- in the future shall comply with MFDA Rules 1.1.2, 2.1.1 and 2.5.1.
In the Settlement Agreement, the Respondent admitted that:
- between October 2009 and April 2017, he, or his assistant for whom he was responsible, altered and used to process transactions, 27 account forms in respect of 15 clients by altering information on the account forms without having the clients initial the alterations, contrary to MFDA Rule 2.1.1; and
- between October 2009 and April 2017, failed to comply with the Member’s policies and procedures by failing to record and maintain evidence of client instructions with respect to alterations made to 27 account forms in respect of 15 clients, contrary to MFDA Rules 2.5.1, 1.1.2, 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 Chilliwack, BC 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.