TORONTO, Oct. 21, 2013 /CNW/ - The MFDA today announced that it has commenced disciplinary proceedings in respect of Edward Andrew Rempel (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: On September 19, 2011, without the knowledge or prior written consent of the Member, the Respondent contacted client KS, who had filed a complaint against the Respondent with the Member, by telephone in order to:
|(a)||persuade client KS to withdraw part of his complaint against the Respondent;|
|(b)|| offer to compensate client KS for the deferred sales charges he would incur if he
withdrew his complaint and collapsed the leveraged investment strategy that was
the subject matter of the complaint; and
|(c)||impose conditions on his proposal to client KS in order to keep the proposal secret;|
contrary to MFDA Rules 2.1.1 and 2.1.4, MFDA Policy No. 3 and the Policies and Procedures of the Member.
Allegation #2: On November 28, 2011, prior to learning that client KS had recorded the telephone conversation of September 19, 2011 referred to in Allegation #1, the Respondent sent a written statement to the MFDA in which he falsely denied that he had attempted to:
|a)||persuade client KS to withdraw all or part of his complaint; and|
|b)||negotiate a settlement with client KS without the prior written consent of the Member;|
contrary to MFDA Rule 2.1.1 and section 22.1 of MFDA By-law No. 1.
The first appearance in this matter will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on November 27, 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 115 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:
Managing Director, Enforcement