January 6, 2021 (Toronto, Ontario) – A settlement hearing in the matter of Scott Elliott Sherman (“Respondent”) was held by electronic hearing on January 6, 2021, in Toronto, Ontario before a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”).
The Hearing Panel accepted the settlement agreement dated December 7, 2020 (“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 $20,000;
- costs in the amount of $2,500; and
- shall in the future comply with MFDA Rule 2.1.1.
In the Settlement Agreement, the Respondent admitted that:
- between December 8, 2015 and August 31, 2018, he altered, and used to process transactions, 11 account forms in respect of 9 clients by altering information on the account forms without having the client initial the alterations, contrary to MFDA Rule 2.1.1;
- between June 15, 2015 and February 26, 2019, he obtained, possessed, and, in some instances used to process transactions, 49 pre-signed account forms in respect of 28 clients, contrary to MFDA Rule 2.1.1; and
- between December 17, 2015 and January 7, 2016, he photocopied a client account form that had been signed by 2 clients and altered the form to complete 4 additional transactions, contrary to MFDA Rule 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 Ottawa, 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 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.