TORONTO, April 21 /CNW/ - The Mutual Fund Dealers Association of Canada
("MFDA") today announced that it has commenced disciplinary proceedings
against Michael Brandon Johns (the "Respondent").
MFDA staff alleges in its Notice of Hearing that Mr. Johns engaged in the
following conduct contrary to the By-laws, Rules or Policies of the MFDA:
Allegation No.1: Between October 2003 and January 2006, the Respondent
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 recommending, selling or facilitating the sale of Lighthouse Pointe
Limited Partnership units ("Lighthouse LPs") and Ashton Oaks Limited
Partnership units ("Ashton LPs") to clients, contrary to MFDA Rule 1.1.1.
Allegation No.2: Between October 2003 and January 2006, the Respondent
engaged in another occupation, which was not properly disclosed to and
approved by the Member and not properly disclosed to clients, by
recommending, selling or facilitating the sale of Lighthouse LPs and
Ashton LPs, contrary to MFDA Rule 1.2.1(d).
Allegation No.3: Between October 2003 and January 2006, the Respondent
recommended, sold or facilitated the sale of Lighthouse LPs and Ashton
LPs to clients without ensuring that:
(a) the investments were suitable for the clients, and in keeping with
their investment objectives, contrary to MFDA Rules 2.2.1 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, thereby
engaging the jurisdiction of the Hearing Panel to impose a penalty
on the Respondent pursuant to s. 24.1.1(h) of MFDA By-law No. 1.
Allegation No.4: Between October 2003 and January 2006, the Respondent
failed to comply with the Member's policies and procedures with respect
to the disclosure and approval of outside business activities,
contrary to MFDA Rule 2.1.1.
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 June 16, 2009 at 10:00 a.m. (Eastern) or as soon
thereafter as the appearance 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
A copy of the Notice of Hearing is available on the MFDA website at
The MFDA is the self-regulatory organization for Canadian mutual fund
dealers, regulating the operations, standards of practice and business conduct
of its 150 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