TORONTO, Sept. 20, 2016 /CNW/ - A Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") has issued its Decision and Reasons dated September 19, 2016 ("Decision and Reasons") in connection with a disciplinary hearing held in Toronto, Ontario on August 25, 2016, in the matter of Ernest Victor Romain (the "Respondent").
In its Decision and Reasons, the Hearing Panel found that the allegations made against the Respondent in the Notice of Hearing dated January 21, 2016 ("Notice of Hearing"), had been established. In particular, the Respondent:
Allegation #1: Between May 2014 and September 2014, obtained and maintained 134 pre-signed account forms in respect of 85 clients, contrary to MFDA Rule 2.1.1.
Allegation #2: On August 8, 2015, engaged in unauthorized discretionary trading by processing five (5) withdrawals in respect of seven (7) clients without obtaining client instructions, contrary to MFDA Rules 2.3.1(a) and 2.1.1.
Allegation #3: On August 8, 2015, misled the Member by falsely representing to the Member that he obtained client instructions to process five (5) withdrawals in respect of seven (7) clients, thereby interfering with the Member's ability to supervise the Respondent's trading activity and engaging in conduct unbecoming an Approved Person, contrary to MFDA Rules 1.1.2, 2.5.1 and 2.1.1.
In its Decision and Reasons, the Hearing Panel imposed the following sanctions on the Respondent:
- a prohibition for a period of two (2) years, from the date of the Panel's decision, from conducting securities related business in any capacity while in the employ of or associated with any Member of the MFDA;
- a fine in the amount of $40,000; and
- costs in the amount of $7,500.
A copy of the Decision and Reasons is available on the MFDA website at www.mfda.ca. During the period described in the Decision and Reasons, the Respondent carried on business in the Burlington, 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 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
For further information: Charles Toth, Director, Litigation, 416-943-4619, [email protected]