TORONTO, July 24, 2019 /CNW/ - A settlement hearing in the matter of James Andrew Phillips ("Respondent") was held today in Halifax, Nova Scotia before a three-member Hearing Panel of the Atlantic Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA").
The Hearing Panel approved the settlement agreement dated June 17, 2019 ("Settlement Agreement") between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were imposed on the Respondent:
- a prohibition from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member for a period of five years;
- a fine in the amount of $10,000, payable in installments as follows:
- $2,500 upon acceptance of the Settlement Agreement;
- $1,250 payable on the first day of each month commencing on September 1, 2019 and ending on February 1, 2020; and
- costs in the amount of $5,000, payable upon acceptance of the Settlement Agreement.
In the Settlement Agreement, the Respondent admitted that, commencing in January 2015, he engaged in personal financial dealings with client RB that gave rise to an actual or potential conflict of interest by borrowing approximately $50,000 from a client and the Respondent failed to disclose the conflict of interest to the Member or otherwise ensure that the conflict was addressed by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to the Member's policies and procedures and MFDA Rules 2.1.4, 2.5.1, 1.1.2, 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 conducted business from a branch office located in Windsor, Nova Scotia.
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.
SOURCE Mutual Fund Dealers Association of Canada
For further information: Charles Toth, Managing Director, Litigation, 416-943-4619, [email protected]