TORONTO, May 2, 2019 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") has commenced disciplinary proceedings in respect of Michel Claude Bédard ("Respondent"). In its Notice of Hearing dated April 16, 2019 ("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 January 2016 and March 2016, the Respondent engaged in securities related business that was not carried on for the account of the Member and through the facilities of the Member by recommending, selling, and/or facilitating the sale of at least $100,000 of syndicated mortgages to at least one client, contrary to the Member's policies and procedures and MFDA Rules 1.1.1, 1.1.2, 2.5.1, and 2.1.1.
Allegation #2: Between January 2016 and March 2016, the Respondent engaged in another gainful occupation, which was not disclosed to and approved by the Member, by recommending, selling, and/or facilitating the sale of at least $100,000 of syndicated mortgages to at least one client, contrary to the Member's policies and procedures and MFDA Rules 1.2.1(c) (now MFDA Rule 1.3)1, 1.1.2, 2.5.1, and 2.1.1.
Allegation #3: Between January 2016 and March 2016, the Respondent referred one client to mortgage brokers or agents selling syndicated mortgages, and received at least $5,000 in referral fees for doing so, thereby participating in a referral arrangement to which the Member was not a party and which did not otherwise comply with sections 13.7 to 13.10 of National Instrument 31-103, the Member's policies and procedures, and MFDA Rules 2.4.2, 1.1.2, 2.5.1, and 2.1.1.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on June 11, 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 firstname.lastname@example.org 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 81,000 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.
1 Staff is relying on former MFDA Rule 1.2.1(c) which was amended and renumbered as MFDA Rule 1.3 effective March 17, 2016.
SOURCE Mutual Fund Dealers Association of Canada
For further information: Charles Toth, Managing Director, Litigation, 416-943-4619, email@example.com