TORONTO, Oct. 30, 2015 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") has commenced disciplinary proceedings in respect of Rodney M. Warren (the "Respondent"). In its Notice of Hearing dated October 15, 2015, Staff of the MFDA alleges that the Respondent engaged in the following conduct contrary to the By-laws, Rules and/or Policies of the MFDA:
Allegation #1: Between August 2006 and January 2013, the Respondent failed to ensure that his leveraged investment recommendations were suitable for clients DZ and EZ and clients HN and MN having regard to the clients' "Know-Your Client" information and financial circumstances, including but not limited to, the clients' age, employment status, ability to afford the costs associated with the investment loans, and ability to withstand investment losses, contrary to MFDA Rules 2.2.1 and 2.1.1.
Allegation #2: Between August 2006 and January 2013 the Respondent misrepresented, or failed to fully and adequately explain, the risks and benefits of the leveraged investment recommendations that he made to clients HN and MN, thereby failing to ensure that the leveraged investment recommendations were suitable and appropriate for the clients and/or failing to present the leveraged investment strategy to the clients in a fair and balanced manner, contrary to MFDA Rules 2.2.1 and 2.1.1.
Allegation #3: Between May 22, 2012 and September 17, 2012, the Respondent failed to report a complaint to the Member and attempted to negotiate a settlement with two clients without the Member's knowledge or approval, which prevented the Member from complying with its complaint handling obligations and conducting a reasonable supervisory investigation, contrary to MFDA Policy No. 6, subsection 4.1(a), MFDA Policy No. 3, and MFDA Rules 2.1.1, 1.1.2 and 2.5.1.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA's Pacific Regional Council on December 1, 2015 at 10:00 a.m. (Pacific), or as soon thereafter as the appearance can be held, 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 take place in the hearing room at the MFDA offices, located at 650 West Georgia Street, Suite 1220, Vancouver, British Columbia, and will be open to the public, except as may be required for the protection of confidential matters. The hearing on the merits will take place in Vancouver, British Columbia at a time and venue to be announced.
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 Vancouver and Langley, British Columbia areas.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 102 Members and their approximately 83,000 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: Charles Toth, Director, Litigation, 416-943-4619, firstname.lastname@example.org; Jeff Mount, Vice-President, Pacific Region, 604-694-8846, email@example.com