TORONTO, Aug. 14, 2019 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Stuart Michael Gibson ("Respondent") by Notice of Hearing dated December 18, 2018 ("Notice of Hearing").
The misconduct phase of this disciplinary proceeding was held today in Toronto, Ontario before a three-member Hearing Panel of the MFDA's Central Regional Council. The Hearing Panel found that the three allegations concerning the Respondent set out in the Notice of Hearing had been established. In particular, the Hearing Panel made the following findings:
Allegation #1: Between 2008 and September 2016, the Respondent borrowed a total of $102,500 from four clients, thereby engaging in personal financial dealings with the clients which gave rise to conflicts or potential conflicts of interest that the Respondent failed to disclose to the Member or address by the exercise of responsible business judgment influenced only by the best interests of the clients, contrary to the policies and procedures of the Member, and MFDA Rules 2.1.4, 2.10, 1.1.2, and 2.1.1.
Allegation #2: Between November 2012 and October 2013, the Respondent engaged in a dual occupation that was not approved by the Member, contrary to MFDA Rule 1.2.1(c) (now Rule 1.3.2)1 and 2.1.1.
Allegation #3: Between 2009 and March 2016, the Respondent misled the Member when he submitted annual consultant certificates to the Member in which he falsely certified that he had not borrowed money from clients and did not engage in any undisclosed outside business activity, contrary to MFDA Rule 2.1.1.
The Hearing Panel advised that it will issue written reasons for its decision as to misconduct in due course. Submissions with respect to penalty will take place October 2, 2019, commencing at 10:00 a.m. (Eastern), in the hearing room at the offices of the MFDA, 121 King Street West, Suite 1000, Toronto, Ontario. The proceeding will continue to be open to the public, except as may be required for the protection of confidential matters.
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 81,000 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.
1 Effective March 17, 2016, former MFDA Rule 1.2.1(c) was amended and renumbered as MFDA Rule 1.3.2. Both versions of the Rule required Approved Persons to obtain approval from the Member before engaging in another gainful occupation. For purposes of this proceeding, Staff is alleging that the Respondent contravened former Rule 1.2.1(c) which was applicable at the material time.
SOURCE Mutual Fund Dealers Association of Canada
For further information: Charles Toth, Managing Director, Litigation, 416-943-4619, [email protected]