TORONTO, June 26, 2017 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") has commenced disciplinary proceedings in respect of FundEX Investments Inc. ("Respondent"). In its Notice of Hearing dated June 7, 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 November 16, 2010 and November 16, 2013, the Respondent failed to conduct an on-site compliance review of the branch of its Approved Person Scott Reeves, contrary to MFDA Rule 2.5.1 and MFDA Policy No. 5.
Allegation #2: Between 2007 and 2008, the Respondent failed to conduct a reasonable supervisory investigation when it received information that its Approved Person Paul Wemple was offering investments to clients and other individuals outside the Respondent, contrary to MFDA Rules 1.1.1, 1.2.1, and 2.5.1.
Allegation #3: Commencing December 7, 2015, the Respondent failed to ensure that a complaint from a client regarding its Approved Person Paul Wemple was handled fairly, contrary to MFDA Rule 2.11 and MFDA Policy No. 3.
Allegation #4: Between June 2011 and April 2012, the Respondent failed to adequately supervise its Approved Person Christopher Singer's recommendation to a client for the purchase of an exempt market product, which recommendation was unsuitable for the client having regard to concentration and the client's Know-Your-Client information, including but not limited to the client's investment knowledge and experience, and time horizon, contrary to MFDA Rules 2.2.1 and 2.1.1.
Allegation #5: Between November 2007 and approximately February 2014, the Respondent did not have adequate procedures in place to monitor all of the holdings in its client accounts held at Canadian Western Trust, and did not identify the sale of unapproved products in the accounts of two clients, contrary to MFDA Rule 2.5.1.
Allegation #6: Commencing in 2011, the Respondent failed to ensure that complaints from two clients regarding its Approved Persons Stuart Henschel and William Cormylo, were handled fairly, contrary to MFDA Rule 2.11 and MFDA Policy No. 3.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on August 2, 2017 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]