TORONTO, Sept. 30, 2016 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Keith Lorne Davis (the "Respondent") by Notice of Hearing (the "Notice of Hearing") dated March 9, 2016.
A disciplinary hearing in this matter was held on September 28, 2016 in Edmonton, Alberta before a three-member Hearing Panel of the MFDA's Prairie Regional Council. After hearing submissions and receiving evidence from Staff of the MFDA, the Hearing Panel found that the following allegations concerning the Respondent had been established:
Allegation #1: Between October 1, 2009 and September 9, 2013 the Respondent engaged in personal financial dealings with a client by borrowing at least $80,000 from client MJ, thereby giving rise to a conflict or potential conflict of interest which the Respondent failed to address by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to MFDA Rules 2.1.4 and 2.1.1.
Allegation #2: Between October 1, 2009 and September 9, 2013, the Respondent had and continued in a dual occupation which was not disclosed to and approved by the Member, contrary to MFDA Rules 1.2.1(c) (formerly MFDA Rule 1.2.1(d)) and 2.1.1.
Allegation #3: Between February 1, 2013 and March 31, 2013, the Respondent misled the Member by falsely answering the Member's Annual Compliance Certification when he stated that he did not engage in any dual occupations, thereby interfering with the ability of the Member to supervise his conduct and comply with its obligations under MFDA Rule 2.1.4, contrary to MFDA Rules 1.1.2 and 2.1.1.
Allegation #4: Between January 1, 2010 and September 9, 2013, the Respondent obtained and maintained at least 17 blank or partially completed pre-signed account forms in respect of 9 clients, contrary to MFDA Rule 2.1.1.
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 permanent prohibition on the authority of the Respondent to conduct securities related business while in the employ of or associated with any Member of the MFDA;
- a fine in the amount of $90,000 in relation to the Allegation #1;
- a fine in the amount of $50,000 in relation to the Allegations #2 and 3;
- a fine in the amount of $10,000 in relation to the Allegation #4; and
- costs in the amount of $10,000.
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 83,000 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