TORONTO, July 20, 2016 /CNW/ - A Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") has issued its Reasons for Decision in connection with a settlement hearing held in Toronto, Ontario on July 6, 2016 in the matter of Jacqueline De Backer (the "Respondent"). The Reasons for Decision relate to the Hearing Panel's acceptance of the settlement agreement (the "Settlement Agreement") entered into between the Respondent and Staff of the MFDA. In its Reasons for Decision dated July 19, 2016, the Hearing Panel confirmed the sanctions imposed on the Respondent:
- shall be prohibited from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member, for one (1) year;
- shall pay a fine in the amount of $10,000, payable as follows:
i) $5,000 payable on or before the date of the settlement hearing;
ii) $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; and
- shall in the future comply with MFDA Rule 2.1.1.
In the Settlement Agreement, the Respondent admitted that between 2007 and 2010, she failed to ensure that four (4) clients understood the risks, benefits, material assumptions and features of a leveraged investment strategy that she recommended to them, thereby failing to present the leveraged investment strategy to the clients in a fair and balanced manner, contrary to MFDA Rule 2.1.1.
Copies of the Reasons for Decision and the Settlement Agreement are available on the MFDA website at www.mfda.ca. During the period described in the Reasons for Decision, the Respondent carried on business in the Toronto, 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]