MFDA Hearing Panel makes findings against Francis Dorrington
TORONTO, June 3, 2015 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Francis Dwight Zachary Dorrington (the "Respondent") by Notice of Hearing (the "Notice of Hearing") dated May 1, 2014.
The hearing of this matter on its merits was held on June 2, 2015 in Toronto, Ontario before a three-member Hearing Panel of the MFDA's Central Regional Council. Prior to the hearing, the parties filed an Agreed Statement of Facts (the "Agreed Statement of Facts") in which the Respondent admitted to facts constituting contraventions of MFDA By-laws, Rules or Policies, for which he could be penalized by a Hearing Panel pursuant to section 24.1 of MFDA By-law No. 1. In particular, the Panel found that:
| i) |
in October 2010, he failed to ensure that an investment recommendation he made to clients BK and AK in respect of the sale proceeds of their house in the amount of $400,000 was suitable for them having regard to their investment objectives, risk tolerance and time horizon, contrary to MFDA Rule 2.2.1(c); |
| ii) |
in October 2010, he gave an undertaking in relation to the future value of a mutual fund he recommended to clients BK and AK for the purposes of effecting a trade in that security when he personally guaranteed to reimburse them for any decline in the value of their investment after one year, contrary to MFDA Rule 2.1.1; and |
| iii) |
on or about October 13, 2011, he engaged in unauthorized discretionary trading by processing a redemption in the amount of $33,335.40 in the account of clients BK and AK without their knowledge, instructions or approval, contrary to MFDA Rules 2.3.1 and 2.1.1. |
Following submissions from the parties, the Hearing Panel reserved judgement with respect to penalty, and advised that it will issue its written decision and provide its reasons in due course.
Copies of the Notice of Hearing and Agreed Statement of Facts are available on the MFDA website at www.mfda.ca. During the period described in the Notice of Hearing, the Respondent carried on business in Brampton, Ontario.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 102 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
Shaun Devlin, Senior Vice-President, Member Regulation, Enforcement, 416-943-4672, [email protected]
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