The subject matter of the proposed Settlement Agreement concerns matters for which the Respondent may be disciplined as an approved person of the MFDA, pursuant to ss. 20 and 24.1.1 of By-law No. 1 of the MFDA.
- The proposed Settlement Agreement concerns allegations that the Respondent:
- on or about May 12, 2016, recorded the risk tolerance of a client on an account form without speaking with the client, thereby failing to use due diligence to learn and accurately record the client’s “Know Your Client” information to ensure that each order accepted and recommendation made for the account was suitable for the client, contrary to MFDA Rules 2.2.1 and 2.1.1;
- on or about May 26, 2016, processed a mutual fund purchase totaling approximately $14,239 in a client’s account without client authorization, contrary to MFDA Rule 2.1.1;
- between November 2012 and October 2015, altered 11 account forms in respect of seven clients, by altering information on the account forms without having the clients initial the alterations, contrary to MFDA Rule 2.1.1; and
- between February 2011 and May 2016, obtained, possessed, and used to process transactions, eight pre-signed account forms in respect of five clients, contrary to MFDA Rule 2.1.1.
- MFDA settlement hearings are typically held in the absence of the public pursuant to section 20.5 of MFDA By-law No. 1 and Rule 15.2(2) of the MFDA Rules of Procedure.
Bernadette DevineBernadette DevineAssistant Corporate Secretary
Mutual Fund Dealers Association of Canada
121 King St. West, Suite 1000
Toronto, ON M5H 3T9
E-mail: [email protected]