TORONTO, May 8, 2014 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") has commenced a disciplinary proceeding in respect of Francis Dwight Zachary Dorrington (the "Respondent"). In its Notice of Hearing dated May 1, 2014, 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: In October 2010, the Respondent failed to ensure that an investment recommendation he made to clients BK and AK in respect of the sale proceeds of their house in the amount of $400,000 was suitable for them having regard to their investment objectives, risk tolerance and time horizon, contrary to MFDA Rule 2.2.1(c).
Allegation #2: In October 2010, the Respondent gave an undertaking in relation to the future value of a mutual fund he recommended to clients BK and AK for the purposes of effecting a trade in that security when he personally guaranteed to reimburse them for any decline in the value of their investment after one year, contrary to section 38(2) of the Securities Act (Ontario) and MFDA Rule 2.1.1.
Allegation #3: On or about October 13, 2011, the Respondent engaged in unauthorized discretionary trading by processing a redemption in the amount of $33,335.40 in the account of clients BK and AK without their knowledge, instructions or approval, contrary to MFDA Rules 2.3.1 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 June 17, 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. 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 111 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: Hugh Corbett, Managing Director, Enforcement, 416-943-4685, [email protected]