TORONTO, May 9, 2019 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Daniel Phillipus Botha ("Respondent") by Notice of Hearing dated March 23, 2018.
A disciplinary hearing in this proceeding was held on May 6 and May 7, 2019 in Calgary, Alberta before a three-member Hearing Panel of the MFDA's Prairie Regional Council. After receiving evidence and hearing submissions from the parties, the Hearing Panel found that the three allegations set out in the Notice of Hearing had been established. In particular, the Hearing Panel made the following findings of misconduct:
Allegation #1: Between March 2014 and March 2015, the Respondent falsified and used to process transactions, three account forms in respect of two clients by altering information on the account forms without having the clients initial the alterations, contrary to MFDA Rule 2.1.1;.
Allegation #2: Between January 2011 and January 2016, the Respondent obtained, possessed, and in some instances, used to process transactions, 41 pre-signed account forms in respect of 26 clients, contrary to MFDA Rule 2.1.1; and
Allegation #3: between March 2014 and August 2015, the Respondent:
a) on eight occasions, submitted client Limited Trading Authorization forms to the Member for processing on which he falsely indicated that he had witnessed clients signatures; and
b) on four occasions, submitted client Limited Trading Authorization forms to the Member for processing that did not meet the Member's signature verification requirements,
contrary to the Member's policies and procedures, and MFDA Rules 2.5.1, 1.1.2, and 2.1.1;.
After hearing submissions from the parties with respect to penalty, the Hearing Panel imposed the following sanctions on the Respondent and advised that it will issue written reasons in due course:
- a fine in the amount of $15,000 ("Fine");
- costs in the amount of $6,000 ("Costs");
- payment of the Fine and Costs shall be made as follows:
- $1,750 on or before May 31, 2019;
- $1,750 on or before June 28, 2019;
- $1,750 on or before July 31, 2019;
- $1,750 on or before August 30, 2019;
- $1,750 on or before September 30, 2019;
- $1,750 on or before October 31, 2019;
- $1,750 on or before November 29, 2019;
- $1,750 on or before December 31, 2019;
- $1,750 on or before January 31, 2020;
- $1,750 on or before February 28, 2020;
- $1,750 on or before March 31, 2020;
- $1,750 on or before April 30, 2020.
- if the Respondent fails to make any of the installment payments described above, any outstanding balance of the Fine and Costs owed shall become immediately due and payable to the MFDA.
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.
SOURCE Mutual Fund Dealers Association of Canada
For further information: Charles Toth, Managing Director, Litigation, 416-943-4619, firstname.lastname@example.org; Mark Stott, Vice-President, Prairie Region, 403-215-8329, email@example.com