TORONTO, March 26, 2014 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") has commenced a disciplinary proceeding in respect of Gabriel Richard Frank (the "Respondent"). In its Notice of Hearing dated March 3, 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: Between 2006 and April 2011, the Respondent recommended and implemented leveraged investments in the accounts of 10 clients without obtaining the approval of the Member prior to proceeding with the leveraged investments, contrary to the Member's Policies and Procedures, thereby interfering with the ability of the Member to supervise the trading activity in the clients' accounts and engaging in conduct unbecoming an Approved Person, contrary to MFDA Rules 1.1.2 and 2.5.1 and 2.1.1.
Allegation #2: Between March 2011 and February 6, 2012, the Respondent engaged in personal financial dealings with client AF by borrowing approximately $245,000 from client AF, of which amount the Respondent repaid only $73,100, thereby creating a conflict or potential conflict of interest between the Respondent and client AF which the Respondent failed to ensure was addressed by the exercise of responsible business judgment influenced only by the best interests of client AF, contrary to MFDA Rules 2.1.4 and 2.1.1.
Allegation #3: Commencing January 3, 2013, the Respondent failed to cooperate with an investigation of his activities by the MFDA by failing or refusing to fulfill undertakings to produce documents and information requested by the MFDA, contrary to 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 April 15, 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]