TORONTO, Feb. 9 /CNW/ - A disciplinary hearing in the matter of Stephen Arnold Smith was held
yesterday in Toronto, Ontario before a three-person Hearing Panel of
the MFDA's Central Regional Council.
Prior to hearing MFDA Staff's submissions on the merits, the Hearing
Panel granted a motion by Staff to amend the Notice of Hearing. A copy
of the Amended Notice of Hearing is available on the MFDA website at www.mfda.ca. Staff then advised that Allegations #1, #3 and #4 were being withdrawn
and the Hearing Panel proceeded to hear submissions with respect to
Allegations #2 and #5.
The Hearing Panel found that Allegations #2 and #5 in the Amended Notice of Hearing, set out below, had been established:
Allegation #2: Between September 2004 and February 20, 2007, the Respondent failed to
deal fairly, honestly and in good faith with former client WS by
deliberately misleading WS about the status of his investment in the
Respondent's company, Smith & Tomyak International Inc., contrary to
MFDA Rule 2.1.1.
Allegation #5: Commencing on or about May 12, 2009, the Respondent has failed to
produce for inspection copies of documents and records requested by the
MFDA during the course of an investigation, contrary to section 22.1 of
MFDA By-law No. 1.
The Hearing Panel reserved its decision with respect to penalty and
advised that it will issue written reasons for its decision in due
The MFDA is the self-regulatory organization for Canadian mutual fund
dealers, regulating the operations, standards of practice and business
conduct of its 136 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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