TORONTO, July 9, 2012 /CNW/ - The MFDA today announced that it has commenced disciplinary proceedings in respect of Hugh Blair Smilestone (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: Between June 1, 2004 and March 10, 2010, the Respondent falsified client signatures and initials on account documents and falsified the content of certain other documents in order to:
(a) complete new client application forms;
(b) update Know-Your-Client and banking information;
(c) implement changes to pre-authorized contributions and systematic withdrawal plans; and
(d) execute trades in client accounts,
contrary to MFDA Rule 2.1.1(b) and (c).
Allegation #2: Between January 2008 and March 10, 2010, the Respondent engaged in authorized and unauthorized discretionary trading by determining one or more of the following elements of trades that were executed in client accounts:
(a) the timing of the trade;
(b) the amount of the trade; and
(c) in some cases the securities to be traded;
contrary to MFDA Rules 2.3.1(a) and 2.1.1 (b) and (c).
Allegation #3: In November 2009, the Respondent falsely provided signature guarantees on trade tickets processed for the account of client MH after he had falsified the signature of client MH on the trade tickets, contrary to MFDA Rule 2.1.1(b).
Allegation #4: Between January 2007 and March 10, 2010, the Respondent failed to comply with conditions imposed on him by the Member with respect to the approval of his outside business activity, contrary to former MFDA Rule 1.2.1(d) (iii), (iv) and (vi) and MFDA Rule 2.1.1(b).
Allegation #5: On December 17 and 18, 2009, the Respondent provided false responses to the Member's compliance staff during the course of a branch review, contrary to MFDA Rule 2.1.1(b) and (c).
The first appearance in this matter will take place by teleconference before a Hearing Panel of the MFDA's Atlantic Regional Council on August 17, 2012 at 10:00 a.m. (Atlantic) in order to schedule a date for the commencement of the hearing on the merits and to address any other procedural matters. The first 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 121 Members and their approximately 75,000 Approved Persons with a mandate to protect investors and the public interest.
For further information:
416-943-4672 or [email protected]