TORONTO, Dec. 13, 2017 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") has commenced disciplinary proceedings in respect of Dino DeRosa ("Respondent"). In its Notice of Hearing dated November 20, 2017, 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 2006 and April 2013, the Respondent, in his capacity as Chief Compliance Officer ("CCO") of W. H. Stuart Mutuals Ltd. ("W. H. Stuart"), failed to identify regulatory concerns and take adequate supervisory action including completing a reasonable supervisory investigation in response to red flags that indicated, or could have revealed, that W. H. Stuart's principals and Approved Persons were soliciting off-book investments in promissory notes issued by W. H. Stuart, its principals and related entities, contrary to MFDA Rules 1.1.1, 2.5.3 and 2.1.1.
Allegation #2: Between February 2011 and April 2013, the Respondent, in his capacity as CCO of W. H. Stuart, received complaints concerning the accounts of clients SI, DR and MD but failed to ensure that:
- the complaints were reported to the MFDA on the Member Event Tracking System ("METS");
- reasonable supervisory investigations into the subject matter of the complaints were conducted;
- the complaints were dealt with promptly and fairly; and
- records were maintained of the investigation and proposed resolution of the complaints;
contrary to MFDA Rules 1.2.2, 2.1.1, 2.11, 2.1.4, 2.5.3 and MFDA Policy Nos. 3 and 6.
Allegation #3: Between December 2011 and April 2013, the Respondent signed the certificate of partners or directors on behalf of W. H. Stuart that accompanied the submission of the Member's monthly and annual financial reports to the MFDA when he knew or ought to have known that the financial reports contained inaccurate financial information, contrary to MFDA Rules 3.5.1 and 1.1.2 and 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 January 22, 2018 at 10:00 a.m. (Eastern), or as soon thereafter as the appearance can be held, to schedule a date for the commencement of the hearing on the merits and to address any other procedural matters. The 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 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]