TORONTO, Jan. 13 /CNW/ - The Mutual Fund Dealers Association of Canada
("MFDA") today announced that it has commenced disciplinary proceedings
against Hill and Crawford Investment Management Group Ltd. and Albert Rodney
Hill (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
(a) (i) In January 2005 Hill & Crawford made payments to Hill without
obtaining the prior written consent of MFDA Staff, contrary to
the terms of a subordinated loan agreement ("SLA") between
Hill & Crawford and Hill and the MFDA;
(ii) Between April and October 2005, Hill & Crawford, while
designated in early warning pursuant to MFDA Rule 3.4.2, made
payments to Hill and Hill's spouse without obtaining the prior
written consent of MFDA Staff, contrary to the terms of a SLA
between Hill & Crawford and Hill and the MFDA and contrary to
MFDA Rule 3.4.2(b)(iv) (Early Warning Requirements);
(b) In August and September 2006 and in August and September 2007, while
designated in early warning pursuant to MFDA Rule 3.4.2 and subject
to additional early warning restrictions imposed by MFDA Staff
pursuant to MFDA Rule 3.4.3, Hill & Crawford opened 3 new client
accounts and hired 2 new Approved Persons, contrary to MFDA
Rule 3.4.3 (Early Warning Restrictions);
(c) Between February 2007 and December 2008, Hill & Crawford failed to
consistently maintain minimum capital of $50,000 as required for a
Level II dealer and risk adjusted capital greater than zero, contrary
to MFDA Rule 3.1.1.
Allegation 2: Between August 2006 and March 2007, Hill & Crawford failed
to comply with the terms of an Agreement and Undertaking, dated
October 25, 2005, to resolve compliance deficiencies identified during an
MFDA compliance examination, thereby engaging the jurisdiction of the
Hearing Panel to impose a penalty on Hill & Crawford for failing to carry
out an agreement with the MFDA, pursuant to section 24.1.2(i) of MFDA
By-Law No. 1.
Allegation 3: In April 2007, Hill & Crawford was found to be in
possession of eight blank pre-signed forms in respect of six client
accounts, contrary to MFDA Rule 2.1.1.
Allegation 4: Between October 2005 and March 2007, Hill, in his capacity
as President, Chief Compliance Officer and sole shareholder of
Hill & Crawford, engaged in conduct contrary to MFDA Rule 2.1.1(b) and
(c) by failing to ensure that Hill & Crawford:
(a) complied with the terms of the Agreement and Undertaking, dated
October 25, 2005; and
(b) complied with the financial and operational requirements of MFDA
Rules 3.1.1, 3.4.2 and 3.4.3.
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 Friday, February 27, 2009 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 153 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