MFDA issues Notice of Hearing regarding Hill and Crawford Investment Management Group Ltd. and Albert Rodney Hill



    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
MFDA:

    
    Allegation 1:
    -------------
    (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
matters.
    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
www.mfda.ca.

    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 sdevlin@mfda.ca


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