TORONTO, Feb. 8, 2012 /CNW/ - The MFDA today announced that it has commenced disciplinary proceedings in respect of James E. Sellars (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 about October 2005 and November 2008, the Respondent made leveraged investment recommendations to clients TB and AB without performing the necessary due diligence to learn the essential facts relative to the clients, and without ensuring that the leveraged investment recommendations were suitable for the clients and in keeping with the clients' investment objectives, contrary to MFDA Rules 2.2.1 and 2.1.1.|
|Allegation #2: Between about 2005 and 2009, the Respondent misrepresented, or failed to fully and adequately explain, the risks and benefits of leveraged investment recommendations that he made to client TB, thereby failing to ensure that the leveraged investment recommendations were suitable and appropriate for client TB and in keeping with her investment objectives, contrary to MFDA Rules 2.2.1 and 2.1.1.|
|Allegation #3: Between 2005 and 2009, the Respondent relied upon the lender's decision to approve investment loans for at least 96 clients based on their credit worthiness as the determination that the leveraged investment recommendations he made to the clients were suitable for them, without performing his own assessment of the suitability of the leveraging recommendations that he made to the clients, contrary to MFDA Rules 2.2.1, 2.5.1 and 2.1.1.|
The first appearance in this matter will take place by teleconference before a Hearing Panel of the MFDA's Atlantic Regional Council on March 12, 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 125 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]