MFDA Hearing Panel approves settlement agreement with Donald Shaw

TORONTO, June 6, 2017 /CNW/ - A settlement hearing in the matter of Donald William Shaw ("Respondent") was held on June 6, 2017 in Calgary, Alberta before a three-member Hearing Panel of the Prairie Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA").

The Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were imposed on the Respondent:

  • a fine in the amount of $20,000;
  • costs in the amount of $2,500; and
  • shall in future comply with MFDA Rules 2.1.1 and 2.1.4.

In the Settlement Agreement, the Respondent admitted that:

a)

between October 4, 2013 and October 8, 2013, he provided a short term loan of $440,000 to a client, thereby giving rise to a conflict or potential conflict of interest between the Respondent and the client, which the Respondent failed to address by the exercise of reasonable business judgment, influenced only by the best interests of the client, contrary to MFDA Rule 2.1.4;

b)

between November 2012 and November 2015, he obtained, possessed, and in some instances, used to process transactions, 31 pre-signed account forms in respect of 18 clients, contrary to MFDA Rule 2.1.1; and

c)

between November 2014 and April 2015, he altered four (4) account forms in respect of two (2) clients by altering the date on the account forms without having the clients initial the alterations, contrary to MFDA Rule 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 Rocky Mountain House, Alberta 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, 416-943-4619, ctoth@mfda.ca

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