TORONTO, Dec. 16, 2019 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Robert Eugene Palumbo ("Respondent") by Notice of Hearing dated March 4, 2019.
A disciplinary hearing in this proceeding was held on December 13, 2019 in Toronto, Ontario before a three-member Hearing Panel of the MFDA's Central Regional Council. After receiving evidence and hearing submissions from Staff of the MFDA, the Hearing Panel found that the four 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 2016 and May 2017, the Respondent misappropriated approximately $195,626 from three clients, thereby failing to deal fairly, honestly and in good faith with clients, failing to observe high standards of ethics and conduct in the transaction of business and engaging in conduct which is unbecoming and detrimental to the public interest, contrary to MFDA Rule 2.1.1.
Allegation #2: Between approximately September 2015 and December 2016, the Respondent engaged in personal financial dealings with a client which gave rise to a conflict of interest that he failed to disclose to the Member or address by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to the policies and procedures of the Member and MFDA Rules 2.1.4, 2.5.1, 2.10, 1.1.2 and 2.1.1.
Allegation #3: Between May 2014 and June 2017, the Respondent obtained, possessed, and in 6 instances used to process transactions, 13 pre-signed account forms in respect of 10 clients, contrary to MFDA Rule 2.1.1.
Allegation #4: Commencing in November 2017, the Respondent failed to co-operate with an investigation of his conduct by Staff of the MFDA ("Staff"), contrary to section 22.1 of MFDA By-law No. 1.
Following submissions from Staff of the MFDA concerning sanctions, the Hearing Panel reserved its judgment and advised that it will issue its written decision and provide its reasons in due course.
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 conducted business from a branch office located in Sault Ste. Marie, Ontario.
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, [email protected]