TORONTO, Jan. 31, 2017 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") has commenced disciplinary proceedings in respect of Bernd Franz Adolf Niermann (the "Respondent"). In its Notice of Hearing dated December 7, 2016 (the "Notice of Hearing"), Staff of the MFDA alleges that the Respondent engaged in the following conduct contrary to the By-laws, Rules and/or Policies of the MFDA:
Allegation #1: Between August 2008 and November 7, 2014, the Respondent borrowed $71,600 from three clients, thereby giving rise to a conflict of interest which the Respondent failed to address by the exercise of responsible business judgment influenced only by the best interests of the clients, contrary to MFDA Rules 2.1.4 and 2.1.1;
Allegation #2: Between July 2008 and November 2014, the Respondent misled the Member on annual compliance attestations, and during the course of the investigation into his conduct, by failing to disclose that he had borrowed monies from clients, thereby interfering with the ability of the Member to supervise the Respondent, contrary to MFDA Rules 1.1.2, 2.5.1 and 2.1.1;
Allegation #3: Commencing on December 12, 2014, the Respondent misled MFDA Staff about borrowing monies from clients, thereby failing to cooperate with an investigation by MFDA Staff into his conduct, contrary to section 22.1 of MFDA By-law No. 1 and MFDA Rule 2.1.1; and
Allegation #4: Between November 24, 2005 and July 28, 2014, the Respondent obtained and maintained blank or partially complete pre-signed account forms, and/or altered account forms after the clients had signed them, contrary to MFDA Rule 2.1.1.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on March 15, 2017 at 9:00 a.m. (Eastern), or as soon thereafter as the appearance can be held, in order to schedule a date for the commencement of the hearing on the 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.
A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Hearing, the Respondent conducted business in the Collingwood, Ontario area.
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
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For further information: Charles Toth, Director, Litigation, 416-943-4619, [email protected]