TORONTO, May 19, 2017 /CNW/ - A Hearing Panel of the Atlantic Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") issued its Decision and Reasons on September 2, 2011, in connection with a disciplinary hearing held in Saint John, New Brunswick in respect of Scott C. Armstrong ("Armstrong"). A copy of the Decision and Reasons is available on the MFDA website at www.mfda.ca.
On April 30, 2015, Armstrong applied to the Financial and Consumer Services Tribunal of New Brunswick (the "Tribunal") for a Hearing and Review of the MFDA Hearing Panel's decision, pursuant to section 44(1) of the Securities Act, S.N.B. 2004, c. S-5.5, as amended.
On August, 8, 2016, Staff of the MFDA entered into a settlement agreement (the "Settlement Agreement") with Armstrong.
On February 1, 2017, the Tribunal approved the Settlement Agreement between Staff of the MFDA and Armstrong, as a consequence of which:
- the MFDA Decision and Reasons and the Order dated September 2, 2011 pertaining to Scott C. Armstrong and bearing File No. 201037 are rescinded pursuant to section 44 and subsection 193(6) of the Securities Act and the following Order is substituted:
- Armstrong is prohibited from conducting securities related business in any capacity over which the MFDA has jurisdiction pursuant to s. 24.1.1(e) of MFDA By-law No. 1 from September 2, 2011 until August 2, 2016, after which date Armstrong's prohibition shall end and he shall be entitled to apply to be registered to conduct securities related business in any capacity over which the MFDA has jurisdiction;
- Armstrong shall pay to Complainant 1 the amount of $30,000.00;
- No fine is payable by Armstrong to the MFDA;
- There shall be no costs awarded to any of the parties to this proceeding.
In the Settlement Agreement, Armstrong acknowledged that:
- he engaged in personal financial dealings with Complainant 1 by signing a promissory note in the amount of $62,000 payable by him to Complainant 1 in satisfaction of debts owed primarily by Armstrong Financial Services Inc., later known as Gateway, and thereafter failing to pay Complainant 1 in accordance with the terms of the promissory note, contrary to MFDA Rules 2.1.4 and 2.1.1.
The link to the Financial and Consumer Services Tribunal Settlement Approval Order is available here.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its Members and their approximately 83,000 Approved Persons with a mandate to protect investors and the public interest. For more information about the MFDA's complaint and enforcement processes, as well as links to 'Check an Advisor' and other Investor Tools, visit the For Investors page on the MFDA website.
SOURCE Mutual Fund Dealers Association of Canada
For further information: Charles Toth, Director, Litigation, 416-943-4619, [email protected]