TORONTO, Dec. 11, 2017 /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 November 30, 2017 in the matter of Larry Denny McBain ("Respondent").
In its Reasons for Decision dated December 8, 2017, the Hearing Panel confirmed the sanctions imposed on the Respondent. In particular, the Respondent:
- shall pay a fine in the amount of $5,500 (the "Fine");
- has paid costs in the amount of $2,500 ("Costs");
- the Fine and Costs will be paid in certified funds as follows:
- $1,000 payable upon entering into the Settlement Agreement;
- $1,000 payable on the last business day of the first month following the Settlement Hearing;
- $1,000 payable on the last business day of the second month following the Settlement Hearing;
- $1,000 payable on the last business day of the third month following the Settlement Hearing;
- $1,000 payable on the last business day of the fourth month following the Settlement Hearing;
- $1,000 payable on the last business day of the fifth month following the Settlement Hearing;
- $1,000 payable on the last business day of the sixth month following the Settlement Hearing; and
- $1,000 payable on the last business day of the seventh month following the Settlement Hearing;
- if the Respondent fails to make any of the payments described above, any outstanding balance of the Fine shall become immediately due and payable to the MFDA and he shall be immediately suspended from conducting securities related business while in the employ of or associated with a Member of the MFDA until such time as the total amount outstanding of the Fine owed is paid to the MFDA;
- a suspension from acting in the capacity of branch manager for a period of one (1) month;
- upon entering into the Settlement Agreement and prior to him being re-designated as a branch manager, he shall successfully complete the branch manager's course offered by either the Canadian Securities Institute or the Investment Funds Institute of Canada; and
- shall in the future comply with MFDA Rule 2.1.1.
In the Settlement Agreement dated August 11, 2017, the Respondent admitted that:
between October 2011 and August 2015, he obtained, possessed and, in some instances, used to process transactions, eight (8) pre-signed account forms in respect of five (5) clients, contrary to MFDA Rule 2.1.1; and
between October 2011 and August 2015, he, acting in the capacity as branch manager, reviewed and approved the use of six (6) pre-signed account forms, contrary to MFDA Rules 2.5.5(f) and 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, 416-943-4619, [email protected]