TORONTO, March 31, 2016 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") has commenced disciplinary proceedings in respect of Gerard Campbell MacKinnon (the "Respondent"). In its Notice of Hearing dated March 14, 2016, 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 April 12, 2010 and June 11, 2014, the Respondent solicited and accepted $20,000 from client AD for an investment he purported to offer outside the Member, which monies he used to pay his personal debts and failed to invest on behalf of client AD, thereby misappropriating or failing to account for client monies, and engaging in conduct which gave rise to a conflict of interest between the Respondent and the client that the Respondent failed to address by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to MFDA Rules 2.1.1 and 2.1.4.
Allegation #2: In March 2013, the Respondent misled the Member when he falsely stated, in response to a question asked by the Member's compliance staff during a branch audit, that he was not involved in any activities which could give rise to a conflict or potential conflict of interest with a client, thereby interfering with the Member's ability to supervise his activities, and failing to observe high standards of ethics and engaging in conduct unbecoming an Approved Person, contrary to MFDA Rules 1.1.2, 2.5.1, 2.1.4, and 2.1.1.
Allegation #3: Commencing on November 4, 2014, the Respondent failed to attend for an interview with Staff for the purpose of investigating the Respondent's conduct, contrary to section 22.1 of MFDA By-law No. 1.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA's Atlantic Regional Council on May 11, 2016 at 10:00 a.m. (Atlantic), 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]