TORONTO, June 17, 2016 A settlement hearing in the matter of John Mark Wright (the "Respondent") was held yesterday in Toronto, Ontario before a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA").
The Hearing Panel accepted the settlement agreement (the "Settlement Agreement") between Staff of the MFDA and the Respondent, as a consequence of which the Respondent:
- is prohibited from conducting securities related business while in the employ of or associated with any Member of the MFDA for a period of three (3) years from the date that the Settlement Agreement is accepted;
- shall pay a fine in the amount of $15,000 subject to the following payment terms:
(i) $5,000 payable on or before the date of the settlement hearing;
(ii) $5,000 payable no later than six months from the date that the Settlement Agreement is accepted by the Hearing Panel;
(iii) $5,000 payable no later than 12 months from the date that the Settlement Agreement is accepted by the Hearing Panel;
- shall pay costs in the amount of $5,000;
- if the Respondent becomes an Approved Person of a Member of the MFDA in the future, he will comply with MFDA Rules 2.1.1 and 2.1.4.
In the Settlement Agreement the Respondent admitted that between about August 7, 2007 and July 1, 2009, he was shareholder and director of Emerald Capital Internal Ltd. (ECI) which sold its shares to ten (10) clients he serviced, and sold units of the Emerald Explorer Fund (EEF) to six (6) clients he serviced, which gave rise to conflicts or potential conflicts of interest between his interests and the interests of clients that he failed to disclose to the Member and 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.
A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, the Respondent carried on business in the Mississauga, Ontario area.
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, 416-943-4618, [email protected]