TORONTO, July 16, 2012 /CNW/ - A Settlement Hearing in the matter of David George Rounthwaite (the "Respondent") was held today in Toronto, Ontario before a Hearing Panel of the MFDA's Central Regional Council.
The Hearing Panel accepted the Settlement Agreement between MFDA Staff and the Respondent, as a consequence of which the Respondent has paid a fine in the amount of $20,000 and costs in the amount of $5,000.
In the Settlement Agreement, the Respondent admitted that he:
|(a)||engaged in discretionary trading as part of his general practice; and specifically, from 2006 to 2009, engaged in discretionary trading in 29 instances in the accounts of 14 clients, seven of whom had provided the Respondent with a Limited Trading Authorization, contrary to MFDA Rule 2.3 and Rule 2.1.1, and the terms of his registration as a mutual fund salesperson; and|
|(b)||facilitated an investment by a client in 2008 in a charitable donation program which had not been approved for sale by Worldsource Financial Management Inc. and after the Canada Revenue Agency had disallowed the charitable donation program in 2007, contrary to MFDA Rules 2.1.4, 1.2.1(d), and Rule 2.1.1.|
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 121 Members and their approximately 75,000 Approved Persons with a mandate to protect investors and the public interest.
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