TORONTO, May 28 /CNW/ - A Settlement Hearing in the matter of Carmen G. Moerike was held yesterday in Regina, Saskatchewan before a Hearing Panel of the MFDA's Prairie Regional Council.
The Hearing Panel accepted the Settlement Agreement between MFDA Staff and Mr. Moerike, as a consequence of which Mr. Moerike has paid a fine in the amount of $5,000 and has been permanently prohibited from conducting securities related business in any capacity.
In the Settlement Agreement, Mr. Moerike admitted that:
- by borrowing monies from two clients to finance his outside business
activities, he placed his own interests above those of the clients,
thereby giving rise to an actual or potential conflict of interest
which he failed to address by the exercise of responsible business
judgment influenced only by the best interests of the clients,
contrary to MFDA Rule 2.1.4;
- by accepting and holding power of attorney or other similar
authorization for two clients, he acted contrary to MFDA Rule 2.3.1
- by failing to comply with the policies and procedures of the Members
for which he was a mutual fund salesperson by failing to disclose to
the Members his personal financial dealings with two clients, he
interfered with the ability of the Members to supervise his
activities, contrary to MFDA Rules 1.1.2 and 2.5.1.
The Hearing Panel will issue written reasons for its decision in due course. A copy of the Settlement Agreement 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 139 Members and their approximately 73,000 Approved Persons with a mandate to protect investors and the public interest.
SOURCE Mutual Fund Dealers Association of Canada
For further information: For further information: Shaun Devlin, Vice-President, Enforcement, (416) 943-4672 or firstname.lastname@example.org