TORONTO, Aug. 14, 2015 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Frank K. Shaw (the "Respondent") by Notice of Hearing (the "Notice of Hearing") dated December 19, 2014.
The hearing of this matter on its merits was held on July 28, 2015 in Toronto, Ontario before a three-person 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 Respondent admitted that:
between about July 2008 and May 2013, the Respondent obtained, maintained, and, in some instances, used to process transactions, 24 account forms or photocopies of account forms in respect of 10 clients, which were blank or only partially complete at the time the clients signed the account forms or were previously used account forms which had been altered in order to process transactions, contrary to MFDA Rule 2.1.1.
Following submissions from the parties, the Hearing Panel imposed the following sanctions on the Respondent and advised that it will issue written reasons for its decision in due course:
- a fine in the amount of $5,000;
- costs in the amount of $2,500;
- prior to any application for re-registration as branch manager with the Ontario Securities Commission, he shall successfully complete the branch manager's course offered by the Canadian Securities Institute in relation to the mutual fund industry; and
- shall in future comply with Rules 2.1.1.
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 Agreed Statement of Facts, the Respondent carried on business in the Orleans, 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 103 Members and their over 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: Charles Toth, Director, Litigation, 416-943-4619, [email protected]