MFDA Hearing Panel accepts settlement agreement with Gerard MacKinnon

TORONTO, Oct. 3, 2016 /CNW/ - A settlement hearing in the matter of Gerard Campbell MacKinnon (the "Respondent") was held on September 30, 2016 in Halifax, Nova Scotia before a three-member Hearing Panel of the Atlantic 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:

  • has been permanently prohibited from conducting securities related business in any capacity while in the employ of, or in association with, any MFDA Member;
  • has paid a fine in the amount $15,000; and
  • has paid costs in the amount of $7,500.

In the Settlement Agreement, the Respondent admitted that:

a)   

between April 12, 2010 and June 11, 2014, he solicited and accepted $20,000 from client AD for an investment he purported to offer outside the Member, which monies he used to pay his personal debts and failed to invest on behalf of client AD, thereby misappropriating or failing to account for client monies, and engaging in conduct which gave rise to a conflict of interest between the Respondent and the client that the Respondent failed to address by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to MFDA Rules 2.1.1 and 2.1.4;



b)   

in March 2013, he misled the Member when he falsely stated, in response to a question asked by the Member's compliance staff during a branch audit, that he was not involved in any activities which could give rise to a conflict or potential conflict of interest with a client, thereby interfering with the Member's ability to supervise his activities, and failing to observe high standards of ethics and engaging in conduct unbecoming an Approved Person, contrary to MFDA Rules 1.1.2, 2.5.1, 2.1.4, and 2.1.1; and



c)   

commencing on November 4, 2014, he failed to attend for an interview with Staff for the purpose of investigating the Respondent's conduct, contrary to section 22.1 of MFDA By-law No. 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 Halifax, Nova Scotia.

The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 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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http://www.mfda.ca

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