TORONTO, Nov. 25, 2013 /CNW/ - The Mutual Fund Dealers Association of
Canada ("MFDA") today announced that it has commenced disciplinary
proceedings in respect of Byron H. Daues (the "Respondent"). MFDA staff
alleges in its Notice of Hearing that the Respondent engaged in the
following conduct contrary the By-laws, Rules or Policies of the MFDA:
Allegation #1: Commencing in July 2011, the Respondent engaged in personal financial
dealings with a client when he borrowed $40,000 from client AS, which
he failed to repay, thereby giving rise to a conflict or potential
conflict of interest which the Respondent failed to 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.
Allegation #2: The Respondent failed to report the following events, each of which
constituted a complaint in respect of personal financial dealings with
a client, to the Member within 2 business days or at all:
client AS's verbal complaint to the Respondent in each of September,
October, November and December 2011 in respect of the Respondent's
failure to make payments on account of the monies he borrowed from
client AS's written complaint to the Respondent, dated January 18, 2012,
in respect of the Respondent's failure to make payments on account of
the monies he borrowed from client AS; and
client AS's civil action commenced against the Respondent in March 2012
claiming damages of $40,000 plus costs and interest, in respect of the
monies he borrowed from client AS.
contrary to MFDA Policy No. 6, subsection 4.1(b)(v).
The first appearance in this matter will take place by teleconference
before a Hearing Panel of the MFDA's Central Regional Council on
January 21, 2014 at 10:00 a.m. (Eastern) in the MFDA hearing room
located at 121 King Street West, Suite 1000, Toronto, Ontario. The
purpose of the appearance is to set a date for the hearing of this
matter on its merits and to address any other procedural matters and
will be open to the public, except as may be required for the
protection of confidential matters.
A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Hearing, the Respondent
carried on business in the Courtice, 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 114 Members and their approximately 80,000 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.
SOURCE: Mutual Fund Dealers Association of Canada
For further information:
Managing Director, Enforcement