TORONTO, March 5, 2019 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Lee Scott McIvor ("Respondent") by Notice of Hearing dated February 9, 2018.
A disciplinary hearing in this proceeding was held today in Winnipeg, Manitoba before a three-member Hearing Panel of the MFDA's Prairie Regional Council. After receiving evidence and hearing submissions from Staff of the MFDA, 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 finding of misconduct:
Allegation #1: In June 2015, the Respondent, or his assistant for whom he was responsible, cut and pasted a client signature from an account form that had been previously signed by a client onto a new account form and submitted the form for processing, contrary to MFDA Rule 2.1.1.
Allegation #2: Between March 2013 and March 2014, the Respondent falsified and used to process transactions, two 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 #3: Between March 2007 and March 2016, the Respondent, or his assistant for whom he was responsible, obtained, possessed, and, in some instances, used to process transactions, 92 pre-signed account forms in respect of 35 clients, contrary to MFDA Rule 2.1.1
After hearing submissions from Staff of the MFDA as 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 $30,000; and
- costs in the amount of $7,500.
A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Hearing, the Respondent carried on business in the Thompson, Manitoba area and the Kelowna, British Columbia area.
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