MFDA Hearing Panel accepts settlement agreement with Gerald Rumball

TORONTO, Dec. 15, 2015 /CNW/ - A settlement hearing in the matter of Gerald Daniel Rumball (the "Respondent") was held on December 11, 2015 in Toronto, Ontario before a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA"). The Hearing Panel accepted the settlement agreement (the "Settlement Agreement") between Staff of the MFDA and the Respondent, as a consequence of which the Respondent:

  • is permanently prohibited from re-applying for registration as an Approved Person or conducting securities related business while in the employ of or associated with any Member of the MFDA;
  • shall pay a fine in the amount of $25,000, payable in two (2) instalments as follows:
    • $10,000 payable on the date that the Settlement Agreement is accepted by the Hearing Panel; and
    • the balance payable on or before March 1, 2016.
  • has paid costs in the amount of $5,000.

In the Settlement Agreement, the Respondent admitted that between:

(a) 

between October 2003 and May 2013, the Respondent failed to use due diligence to ensure that the orders that he accepted and the investment recommendations that he made to approximately 12 clients to enter into investment agreements with W. H. Stuart Mutuals Ltd. or its principals or affiliated companies (the "Note Program") were suitable for the clients and within the bounds of good business practice, contrary to MFDA Rules 2.2.1 and 2.1.1;



(b) 

between October 2003 and May 2013, the Respondent:


 i.

failed to conduct adequate due diligence to determine and understand the nature of the investment and the extent of the risks associated with investments in the Note Program; and


ii.

failed to adequately explain to clients the risks, benefits, material assumptions and features of investments in the Note Program, and





thereby failed to know the product and present the recommendations to invest in the Note Program in a fair and balanced manner, contrary to MFDA Rules 2.2.1 and 2.1.1.

A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, the Respondent conducted business in the Hagersville, Ontario area.

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, ctoth@mfda.ca

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