TORONTO, Sept. 27, 2016 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Gerard Campbell MacKinnon (the "Respondent") by Notice of Hearing dated March 14, 2016 (the "Notice of Hearing").
As the result of a settlement agreement entered into between Staff of the MFDA and the Respondent, the settlement hearing in this proceeding will take place on September 30, 2016, commencing at 10:00 a.m. (Atlantic) or as soon thereafter as the matter can be heard, in the hearing room at the Nova Scotia Securities Commission, located at 5251 Duke Street, Suite 400, Duke Tower, Halifax, Nova Scotia.
The subject matter of the proposed settlement agreement concerns matters for which the Respondent may be disciplined pursuant to ss. 20 and 24.1.1 of By-law No. 1 of the MFDA. In particular, the settlement agreement concerns allegations that the Respondent:
a) between April 12, 2010 and June 11, 2014, 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;
b) in March 2013, 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; and
c) commencing on November 4, 2014, 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.
MFDA settlement hearings are typically held in the absence of the public pursuant to section 20.5 of MFDA By-law No. 1 and Rule 15.2(2) of the MFDA Rules of Procedure. If the Hearing Panel accepts the settlement agreement, then the proceeding will become open to the public and a copy of the decision of the Hearing Panel and the settlement agreement will be made available at www.mfda.ca.
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]