TORONTO, March 10, 2015 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Bradley Gerard Crompton ("Bradley Crompton") by Notice of Hearing dated December 20, 2012 and against Michelle Ann Crompton ("Michelle Crompton"), William Craig Henderson ("Henderson"), and Ian Omar Webster ("Webster") by Notice of Hearing dated October 18, 2013.
The hearing of this matter on its merits was held yesterday in Toronto, Ontario before a three-member Hearing Panel of the MFDA's Central Regional Council. After hearing submissions from Staff of the MFDA, the Hearing Panel found that the following allegations had been established:
As against Bradley Crompton:
Allegation #1: Between May 2007 and August 2007, Bradley Crompton:
facilitated a stealth advising arrangement whereby non-registered persons engaged in securities related business with clients on behalf of the Member, contrary to MFDA Rules 1.1.1(c) and 2.1.1; and
failed to perform the necessary due diligence to learn the essential facts relative to the clients to ensure that the investments and the leveraged investment strategy recommended to and implemented in the accounts of the clients was suitable for the clients and in keeping with the clients' investment objectives, contrary to MFDA Rules 2.2.1 and 2.1.1.
Allegation #2: Commencing September 2010, Bradley Crompton has failed to attend an interview requested by MFDA Staff during the course of an investigation, contrary to section 22.1 of MFDA By-law No. 1.
As against Michelle Crompton:
Allegation #4: Between May 2007 and October 2008, Michelle Crompton, in her capacity as the designated branch manager, failed to adequately supervise a branch office and failed to ensure that the business conducted on behalf of the Member by Approved Persons at the branch office was in compliance with MFDA By-law, Rules and Policies and applicable securities legislation, contrary to MFDA Rules 2.5.3(b), 2.1.1 and MFDA Policy No. 2
Allegation #5: Beginning in or around September 2010, Michelle Crompton failed to attend an interview requested by MFDA Staff during the course of an investigation, contrary to section 22.1 of MFDA By-law No. 1.
As against Henderson:
Allegation #5: Beginning in or around September 2010, Henderson failed to attend an interview requested by MFDA Staff during the course of an investigation, contrary to section 22.1 of MFDA By-law No. 1.
As against Webster:
Allegation #3: Between May 2007 and September 2008, Webster had and continued in another gainful occupation which was not disclosed to and approved by the Member by advising, recommending, facilitating, or making referrals in respect of mortgages for six (6) clients and one other individual, contrary to MFDA Rules 1.2.1(d) and 2.1.1.
The Hearing Panel set aside April 15, 2015 at 10:00 a.m. (Eastern) in the hearing room at the MFDA office, located at 121 King Street West, Suite 1000, Toronto, Ontario, in order to hear penalty submissions. The proceeding will continue to be open to the public, except as may be required for the protection of confidential matters.
Copies of the Notices of Hearing are available on the MFDA website at www.mfda.ca.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 107 Members and their approximately 80,000 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: Hugh Corbett, Managing Director, Enforcement, 416-943-4685, [email protected]