TORONTO, Sept. 27, 2011 /CNW/ - A disciplinary hearing in the matter of
Douglas Wellings was held today in Toronto, Ontario before a
three-person Hearing Panel of the MFDA's Central Regional Council. The
Hearing Panel found that all the allegations set out in the Notice of
Hearing dated June 27, 2011 had been established:
Allegation #1: Commencing March 8, 2002, the Respondent continued to engage in
personal financial dealings with client MF by failing to repay or
otherwise account for approximately $35,000 the Respondent had borrowed
from client MF in July 1997, contrary to MFDA Rules 2.1.4 and 2.1.1.
Allegation #2: In January 2009, the Respondent failed to deal fairly, honestly and in
good faith with client MF when he attempted to misappropriate
$98,897.67 from client MF by selling her an annuity that he knew did
not exist, contrary to MFDA Rule 2.1.1.
Allegation #3: Commencing in November 2009, the Respondent has failed to comply with
requests by the MFDA to attend at the offices of the MFDA to give
information about the matters under investigation, contrary to MFDA
Rule 22.1 of MFDA By-law No. 1.
The Hearing Panel made the following orders at the conclusion of the
hearing and advised that it would issue written reasons for its
decision in due course:
a permanent prohibition on the authority of the Respondent to conduct
securities related business while in the employ of or associated with
any Member of the MFDA;
a fine in the amount of $235,000; and
costs in the amount of $7,500.
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 132 Members and their approximately 75,000 Approved
Persons with a mandate to protect investors and the public interest.
SOURCE Mutual Fund Dealers Association of Canada
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