TORONTO, Jan. 2, 2018 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") has commenced disciplinary proceedings in respect of Donald John McIntyre ("Respondent"). In its Notice of Hearing dated November 16, 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 January 2010 and November 2015, the Respondent recommended to approximately 423 clients that the clients concentrate all or a substantial portion of their investment holdings in precious metals sector funds, without using adequate due diligence to assess the suitability of his investment recommendations on a client-by-client basis having regard to the essential Know-Your-Client ("KYC") information relevant to each individual client, contrary to MFDA Rules 2.2.1 and 2.1.1;
Allegation #2: Between January 2010 and November 2015, the Respondent failed to use due diligence to learn and accurately record the essential KYC factors relevant to each client, and to each order and account that he accepted, in order to ensure that the clients' KYC information matched his investment recommendations to concentrate all or a substantial portion of the clients' investment holdings in precious metals sector funds, contrary to MFDA Rules 2.2.1 and 2.1.1.
Allegation #3: Between January 2010 and November 2015, the Respondent misrepresented, failed to fully and adequately explain, and/or omitted to explain the risks of investing in precious metals sector funds that he recommended to clients, thereby failing to present the investment recommendations to the clients in a fair and balanced manner, contrary to MFDA Rules 2.2.1 and 2.1.1.
Allegation #4: Between April 2013 and November 2015, the Respondent obtained, possessed and, in some instances, used to process transactions, 3 pre-signed client account forms in respect of 2 clients, contrary to MFDA Rule 2.1.1.
Allegation #5: Between December 2009 and January 2015, the Respondent altered 19 account forms in respect of 14 clients by altering information on the account forms without having the clients initial the alterations, 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 Prairie Regional Council on January 22, 2018 at 10:00 a.m. (Mountain), 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 Hearing on the Merits will take place in Saskatoon, Saskatchewan at a time and venue to be announced.
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 Maklin, Saskatchewan 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