TORONTO, Oct. 23 /CNW/ - The Mutual Fund Dealers Association of Canada
("MFDA") today announced that it has commenced disciplinary proceedings
against Colin Michael Corner, Heather Darlene Halladay, John Joseph Hanson,
Richard Gerald Moore and James Edward Rainbird (the "Respondents").
MFDA staff alleges in its Notice of Hearing that the Respondents engaged
in the following conduct contrary to the By-laws, Rules or Policies of the
Allegation No. 1: Between June 25, 2003 and April 1, 2007, the
Respondents, in their capacity as Approved Persons of Farm Mutual Financial
Services Inc. ("Farm Mutual"), sold an exempt product to approximately
300 Farm Mutual clients without ensuring that:
(a) the investments were suitable for the clients and in keeping with the
clients' investment objectives, contrary to MFDA Rules 2.2.1(a), (b),
(c) and (d), and 2.1.1(c); and
(b) the clients qualified as accredited investors in accordance with
Ontario Securities Commission Rule 45-501 and subsequently National
Instrument 45-106, contrary to MFDA Rule 2.1.1(c), thereby engaging
the jurisdiction of the Hearing Panel to impose a penalty on the
Respondents pursuant to s. 24.1.1(h) of MFDA By-Law No. 1.
Allegation No. 2: Between June 25, 2003 and April 1, 2007, the
Respondents, in their supervisory capacity with Farm Mutual, failed to ensure
that all business conducted on behalf of Farm Mutual by Approved Persons under
their supervision at their respective branch office, including the sale of
exempt products to Farm Mutual clients, was in compliance with MFDA Rules and
Policies and applicable securities legislation, contrary to MFDA Rules
2.5.3(b) and 2.1.1(c) and MFDA Policy No. 2.
The first appearance in this matter will take place by teleconference
before a Hearing Panel of the MFDA Central Regional Council in the Hearing
Room located at the offices of the MFDA, 121 King Street West, Suite 1000,
Toronto, Ontario on Thursday, November 20, 2008 at 10:00 a.m. (Eastern) or as
soon thereafter as can be held.
The purpose of the first appearance is to schedule the date for the
commencement of the hearing on its merits and to address any other procedural
The first appearance is open to the public, except as may be required for
the protection of confidential matters. Members of the public attending the
first appearance will be able to listen to the proceeding by teleconference.
A copy of the Notice of Hearing is available on the MFDA website at
The Mutual Fund Dealers Association of Canada is the self-regulatory
organization for Canadian mutual fund dealers. The MFDA regulates the
operations, standards of practice and business conduct of its 157 Members and
their approximately 75,000 Approved Persons with a mandate to protect
investors and the public interest.
For further information:
For further information: Shaun Devlin, Vice-President, Enforcement,
(416) 943-4672 or firstname.lastname@example.org