TORONTO, Oct. 25, 2013 /CNW/ - The MFDA today announced that it has
commenced disciplinary proceedings in respect of William Morris Adams
("Adams"), Michelle Ann Crompton ("Michelle Crompton"), William Craig
Henderson ("Henderson"), and Ian Omar Webster ("Webster"), collectively
(the "Respondents"). MFDA staff alleges in its Notice of Hearing that
the Respondents engaged in the following conduct contrary the By-laws,
Rules or Policies of the MFDA:
Allegation #1: Between October 2008 and December 2008, Adams signed new account
opening documents as the mutual fund salesperson responsible for the
accounts of at least 12 clients, without having ever met with the
clients, thereby failing to perform the necessary due diligence to
learn the essential facts relative to the clients and failing to
observe high standards of ethics and practice in the conduct of
business, contrary to MFDA Rules 2.2.1 and 2.1.1.
Allegation #2: Between March 2007 and August 2008, Adams obtained blank, pre-signed new
account opening forms and investment loan applications from at least 12
clients, which he forwarded to a third party to complete and submit to
the Member in order to open accounts for the clients and implement a
leveraged investment strategy in the accounts, and in so doing:
participated in an arrangement whereby the third party populated the new
account opening documents and investment loan applications with client
information which was false, incorrect or misleading, thereby failing
to observe high standards of ethics and conduct in the transaction of
business and engaging in conduct unbecoming an Approved Person,
contrary to MFDA Rule 2.1.1; and
failed to ensure that the leveraged investment strategy was suitable for
the clients and in keeping with the clients' investment objectives,
contrary to MFDA Rules 2.2.1 and 2.1.1.
Allegation #3: Between May 2007 and September 2008, Webster had and continued in
another gainful occupation which was not disclosed to and approved by
the Member by advising, recommending, facilitating, or making referrals
in respect of mortgages for 6 clients and one other individual,
contrary to MFDA Rules 1.2.1(d) and 2.1.1.
Allegation #4: Between May 2007 and October 2008, Michelle Crompton, in her capacity
as the designated branch manager, failed to adequately supervise a
branch office and failed to ensure that the business conducted on
behalf of the Member by Approved Persons at the branch office was in
compliance with MFDA By-law, Rules and Policies and applicable
securities legislation, contrary to MFDA Rules 2.5.3(b), 2.1.1 and MFDA Policy No. 2.
Allegation #5: Beginning in or around September 2010, Michelle Crompton and Henderson
have failed to attend an interview requested by MFDA Staff during the
course of an investigation, contrary to section 22.1 of MFDA By-law No.
The first appearance in this matter will take place by teleconference
before a Hearing Panel of the MFDA's Central Regional Council on
December 6, 2013 at 9:00 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.
The MFDA is the self-regulatory organization for Canadian mutual fund
dealers, regulating the operations, standards of practice and business
conduct of its 115 Members and their approximately 80,000 Approved
Persons with a mandate to protect investors and the public interest.
SOURCE: Mutual Fund Dealers Association of Canada
For further information:
Managing Director, Enforcement