TORONTO, Sept. 26, 2012 /CNW/ - The MFDA today announced that it has commenced disciplinary proceedings in respect of Arthur George Pretty (the "Respondent"). MFDA Staff alleges in its Notice of Hearing that the Respondent engaged in the following conduct contrary the By-laws, Rules or Policies of the MFDA:
Allegation #1: Between March 2005 and July 2008, the Respondent recommended and facilitated a leveraged investment strategy for at least 6 clients without performing the necessary due diligence to learn the essential facts relative to the clients, and without ensuring that the leveraged investment strategy was suitable for the clients and in keeping with the clients' investment objectives, contrary to MFDA Rules 2.2.1 and 2.1.1.
Allegation #2: Between March 2005 and July 2008, the Respondent misrepresented or failed to adequately explain the benefits, risks, material assumptions and features of a leveraged investment strategy and its underlying investments to at least 6 clients, thereby failing to present the leveraged investment strategy to the clients in a fair and balanced manner, contrary to MFDA Rule 2.1.1.
Allegation #3: Commencing September 14, 2010, the Respondent failed to comply with multiple requests to provide a written statement to the MFDA in response to client complaints and to attend at an interview requested by the MFDA during the course of the investigation, contrary to section 22.1 of MFDA By-law No. 1.
The first appearance in this matter will take place by teleconference before a Hearing Panel of the MFDA's Atlantic Regional Council on October 26, 2012 at 10:00 a.m. (Atlantic) in order to schedule a date for the hearing of this matter on its merits and to address any other procedural matters. The first appearance will be open to the public, except as may be required for the protection of confidential matters.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 120 Members and their approximately 75,000 Approved Persons with a mandate to protect investors and the public interest.
SOURCE: Mutual Fund Dealers Association of Canada
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