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Bulletin #0148-E

MFDA imposes lifetime ban and $375,000 fine on Robert Roy Parkinson

Mutual Fund Dealers Association of Canada
Association canadienne des courtiers de fonds mutuels
121 King Street West, Suite 1000, Toronto, Ontario, M5H 3T9
TEL: 416-361-6332 FAX: 416-943-1218 WEBSITE:

Contact: Hugh Corbett
Director of Litigation
July 4, 2005
Phone: 416-943-4685

MFDA Bulletin


For Distribution to Relevant Parties Within your Firm

MFDA imposes lifetime ban and $375,000 fine on Robert Roy

Nature of
A Hearing Panel of the Mutual Fund Dealers Association (“MFDA”)
Ontario Regional Council has imposed disciplinary penalties on Robert
Roy Parkinson (“Parkinson”) a former Approved Person of the MFDA.

Following a hearing on March 17, 2005, the Hearing Panel found that
Rules, Policies Parkinson:

1. solicited and accepted from clients a total of
$314,000.00, more or less, and failed to return or
otherwise account for these monies, contrary to MFDA
Rule 2.1.1
2. provided false account statements and order forms to
clients, contrary to MFDA Rule 2.1.1; and
3. abandoned his business as an Approved Person without
notice to his clients or to the Member, thereby
frustrating the ability of the Member and the MFDA to
investigate his conduct, contrary to MFDA Rule 2.1.1.

MFDA Rule 2.1.1 states:

Each Member and each Approved Person of a Member shall:
(a) deal fairly, honestly and in good faith with its clients;
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(b) observe high standards of ethics and conduct in the
transaction of business;
(c) not engage in any business conduct or practice which is
unbecoming or detrimental to the public interest; and
(d) be of such character and business repute and have such
experience and training as is consistent with the
standards described in this Rule 2.1.1 or as may be
prescribed by the Corporation.

The Hearing Panel imposed the following penalties on Parkinson:

1. Permanent prohibition of the authority of Parkinson to
conduct securities related business in any capacity;
2. A fine of $250,000 for soliciting and accepting $314,000
and failing to return these monies;
3. A fine of $75,000 for providing false account statements
and order forms to clients;
4. A fine of $50,000 for abandoning his business without
notice; and
5. Costs in the amount of $7,500.00.

Summary of
From January 1996 to April 2003, Parkinson was registered as a
Mutual Fund Salesperson with the Ontario Securities Commission. In
September 1999, Investment Planning Counsel (“IPC”) became the
sponsoring dealer for Parkinson. He worked at a branch office of IPC in
London, Ontario.

Between November of 2000 and February of 2003, Parkinson induced
at least 25 clients to make investments in a product by the name of
“Glengarry Investments” (“Glengarry”). Approximately $380,000.00
was given to Parkinson by his clients to invest in Glengarry during the
relevant period of time. Of this amount, it appears that Parkinson repaid
approximately $42,000.00, leaving approximately $337,000.00 that, by
the date of the Hearing, had not been repaid by Parkinson and remained
unaccounted for.

Glengarry was not a product known to or approved by IPC for sale by
IPC salespersons. It was not a product that was sold by any other
person or company. Parkinson would recommend Glengarry to clients
seeking to invest in a GIC-like product but wanting a higher rate of
interest. The clients’ payments on account of Glengarry were made
directly to Parkinson or to “Glengarry Investments” or a variation
thereof. There was no evidence that the monies received by Parkinson
from his clients were ever placed in any bona fide investment.
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The investments in Glengarry did not appear on account statements
sent to clients by IPC. Parkinson provided separate account statements
for Glengarry to his clients. These account statements were printed by
Parkinson either on IPC letterhead or on copies of IPC letterhead,
which Parkinson had altered by replacing the IPC masthead with the
name “Glengarry”. Parkinson provided his clients with standard IPC
Order Entry Forms when they wanted to make an investment in

On February 26, 2004, Parkinson failed to appear for work at IPC.
Parkinson did not provide IPC with any prior notice of or explanation
for his absence and has not had any further communication with IPC.

The Hearing Panel noted that it was incumbent upon them to
communicate to Parkinson, to the public and to the mutual fund
industry as a whole, that serious consequences will befall those who
breach their position of trust and take advantage of their role as a

For greater detail, see the Decision and Reasons posted on the MFDA

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