TORONTO, Dec. 20, 2018 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") has commenced disciplinary proceedings in respect of James Russell Taylor ("Respondent"). In its Notice of Hearing dated December 5, 2018 ("Notice of Hearing"), 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 June 2004 and January 2016, the Respondent recommended and solicited the purchase of off-book investments totaling approximately $97,500 USD and $25,000 CAD, thereby engaging in securities related business that was not carried on for the account of the Member or processed through the facilities of the Member, contrary to MFDA Rules 1.1.1 and 2.1.1.
Allegation #2: Between October 2004 and June 2010, the Respondent arranged for client SV to co-invest in a private business, held and controlled off-book investments on behalf of client SV, or received payments from client SV that were deposited into the Respondent's personal accounts or accounts he controlled, thereby engaging in personal financial dealings with client SV which gave rise to a conflict of interest which the Respondent failed to disclose to the Member or address by the exercise of responsible business judgment influenced only by the best interests of the clients, contrary to MFDA Rules 2.1.4 and 2.1.1.
Allegation #3: Commencing in 2011, the Respondent acted as executor and trustee and was named as a beneficiary for deceased client BT's estate, and acted as a trustee for deceased client TJ's estate, contrary to the Member's policies and procedures, and MFDA Rules 2.3.1, 2.1.4 and 2.1.1.
Allegation #4: Commencing in February 2015, the Respondent failed to cooperate with an investigation conducted by Staff of the MFDA, 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 Central Regional Council on March 12, 2019 at 9:00 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. Members of the public who would like to listen to the teleconference should contact [email protected] to obtain particulars.
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 82,000 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, Managing Director, Litigation, 416-943-4619, [email protected]