TORONTO, Feb. 8, 2012 /CNW/ - The MFDA today announced that it has
commenced disciplinary proceedings in respect of James E. Sellars (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: Between about October 2005 and November 2008, the Respondent made
leveraged investment recommendations to clients TB and AB without
performing the necessary due diligence to learn the essential facts
relative to the clients, and without ensuring that the leveraged
investment recommendations were suitable for the clients and in keeping
with the clients' investment objectives, contrary to MFDA Rules 2.2.1
Allegation #2: Between about 2005 and 2009, the Respondent misrepresented, or failed
to fully and adequately explain, the risks and benefits of leveraged
investment recommendations that he made to client TB, thereby failing
to ensure that the leveraged investment recommendations were suitable
and appropriate for client TB and in keeping with her investment
objectives, contrary to MFDA Rules 2.2.1 and 2.1.1.
Allegation #3: Between 2005 and 2009, the Respondent relied upon the lender's
decision to approve investment loans for at least 96 clients based on
their credit worthiness as the determination that the leveraged
investment recommendations he made to the clients were suitable for
them, without performing his own assessment of the suitability of the
leveraging recommendations that he made to the clients, contrary to
MFDA Rules 2.2.1, 2.5.1 and 2.1.1.
The first appearance in this matter will take place by teleconference
before a Hearing Panel of the MFDA's Atlantic Regional Council on March
12, 2012 at 10:00 a.m. (Atlantic) in order to schedule a date for the
commencement of the hearing on the merits and to address any other
procedural matters. The first appearance 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 125 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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