TORONTO, June 18, 2013 /CNW/ - The MFDA today announced that it has commenced disciplinary proceedings in respect of Christiaan Albert Hesselink (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 October 2007 and April 2011, the Respondent engaged in securities related business that was not carried out for the account and through the facilities of the Member by selling, recommending, referring or facilitating the sale of approximately $8.4 million of two different exempt market investment products to at least 58 clients and 18 other individuals outside the Member, contrary to MFDA Rules 1.1.1(a) and 2.1.1.
Allegation #2: Between October 2007 and April 2011, the Respondent had and continued in another gainful occupation that was not disclosed to and approved by the Member by selling, recommending, referring or facilitating the sale of approximately $8.4 million of exempt market investment products outside the Member to at least 58 clients and 18 other individuals, contrary to MFDA Rules 1.2.1(c) and 2.1.1.
Allegation #3: Between October 2007 and April 2011, the Respondent entered into referral arrangements with two parties in respect of the sale of two different exempt market investment products pursuant to which he was paid referral fees or commissions of at least $355,000, contrary to MFDA Rules 2.4.2(b) and 2.1.1.
Allegation #4: Between 2005 and April 2011, the Respondent engaged in personal financial dealings with client HD by co-owning and operating a storage business with client HD, thereby giving rise to a conflict or potential conflict of interest between the Respondent and client HD 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.
The first appearance in this matter will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on July 10, 2013 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.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 116 Members and their approximately 80,000 Approved Persons with a mandate to protect investors and the public interest.
SOURCE: Mutual Fund Dealers Association of Canada
For further information:
Director of Litigation