TORONTO, June 4 /CNW/ - A Settlement Hearing in the matter of Michael Brandon Johns was held today in Toronto, Ontario before a Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada (the "MFDA").
The Hearing Panel approved the Settlement Agreement between Mr. Johns and MFDA Staff, as a consequence of which Mr. Johns:
- has been prohibited from conducting securities related business while
in the employ of, or associated with, any MFDA Member for a period of
six years, excluding securities related business which Mr. Johns may
engage in with Becksley Capital Inc. or any entity which is not an
- shall pay a fine in the amount of $50,000 as follows:
- $10,000 payable upon approval of the Settlement Agreement;
- $10,000 payable on or before September 6, 2010;
- $10,000 payable on or before December 6, 2010; and
- $20,000 payable on or before June 6, 2011.
- shall pay $1,000 in respect of costs of the proceeding on or before
June 6, 2011.
In the event that Mr. Johns fails to pay the fine or costs as ordered he will be permanently prohibited from conducting securities related business with or through any MFDA Member.
The Hearing Panel advised that it would issue written reasons for its decision in due course.
In the Settlement Agreement, Mr. Johns admitted that he engaged in securities related business which was not carried on for the account of the Member or conducted through the facilities of the Member by making referrals in respect of the sale of certain limited partnership units, contrary to MFDA Rules 1.1.1 and 2.4.2. He also admitted that he failed to comply with the Member's policies and procedures with respect to referral arrangements, and the disclosure and approval of outside business activities, contrary to MFDA Rules 1.1.2 and 2.5.1.
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