TORONTO, Nov. 25, 2013 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") today announced that it has commenced disciplinary proceedings in respect of Byron H. Daues (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: Commencing in July 2011, the Respondent engaged in personal financial dealings with a client when he borrowed $40,000 from client AS, which he failed to repay, thereby giving rise to a conflict or potential conflict of interest which the Respondent failed to address by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to MFDA Rules 2.1.4 and 2.1.1.
Allegation #2: The Respondent failed to report the following events, each of which constituted a complaint in respect of personal financial dealings with a client, to the Member within 2 business days or at all:
|a)||client AS's verbal complaint to the Respondent in each of September, October, November and December 2011 in respect of the Respondent's failure to make payments on account of the monies he borrowed from client AS;|
|b)||client AS's written complaint to the Respondent, dated January 18, 2012, in respect of the Respondent's failure to make payments on account of the monies he borrowed from client AS; and|
|| client AS's civil action commenced against the Respondent in March 2012 claiming damages of $40,000 plus costs and interest, in respect of the monies he borrowed from client AS.
contrary to MFDA Policy No. 6, subsection 4.1(b)(v).
The first appearance in this matter will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on January 21, 2014 at 10:00 a.m. (Eastern) in the MFDA hearing room located at 121 King Street West, Suite 1000, Toronto, Ontario. The purpose of the appearance is to set a date for the hearing of this matter on its merits and to address any other procedural matters and 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 carried on business in the Courtice, 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 114 Members and their approximately 80,000 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:
Managing Director, Enforcement