TORONTO, Jan. 21 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") today announced that it has commenced disciplinary proceedings against Douglas Bryan Ruemper (the "Respondent").
MFDA staff alleges in its Notice of Hearing that the Respondent engaged in the following conduct contrary to the By-laws, Rules or Policies of the MFDA:
Allegation 1: Between April 27, 2005 and October 1, 2007, the Respondent
engaged in personal financial dealings with client WA by paying him
$29,000 purportedly on account of investments made by client WA, thereby
creating a conflict or potential conflict of interest between the
Respondent and client WA which the Respondent failed to address by the
exercise of responsible business judgment influenced only by the best
interests of client WA, contrary to MFDA Rules 2.1.4 and 2.1.1.
Allegation 2: Between April 27, 2005 and November 16, 2007, the
Respondent failed to report to the Member complaints from client WA with
respect to client WA's investment in an outside business activity and
offered to pay client WA $10,000 to settle a client complaint without the
prior written consent of the Member, contrary to MFDA Rule 1.2.5(b), MFDA
Policy No. 3, MFDA Policy No. 6 and MFDA Rule 2.1.1.
Allegation 3: Between April 2, 2004 and December 4, 2007, the Respondent
had and continued in 12 gainful occupations that were not disclosed to
and approved by the Member, contrary to MFDA Rules 1.2.1(d) and 2.1.1.
Allegation 4: From December 1, 2004 to June 6, 2006, the Respondent
engaged in securities related business that was not carried on for the
account of the Member and through the facilities of the Member by selling
or facilitating the sale of $105,000 of shares of two companies in which
the Respondent had an interest to five clients, contrary to MFDA
Rules 1.1.1 and 2.1.1.
Allegation 5: By engaging in the conduct described in Allegation No. 4,
the Respondent failed to ensure that a conflict or potential conflict of
interest between his interests and those of the five clients were
addressed by the exercise of responsible business judgment influenced
only by the best interests of the clients, contrary to MFDA Rules 2.1.4
Allegation 6: Between April 2, 2004 and December 4, 2007, the Respondent
failed to comply with the Member's policies and procedures by:
a. providing a false response to the Member's Compliance Checklist on
March 29, 2004 to enable him to commence acting as an Approved
Person effective April 2, 2004; and
b. thereafter engaging in the conduct described in Allegations No. 3,
No. 4 and No. 5 in contravention of the Member's policies and
contrary to MFDA Rules 1.1.2 and 2.5.1 and MFDA Rule 2.1.1.
The first appearance in this matter will take place by teleconference before a Hearing Panel of the MFDA's Pacific Regional Council on February 25, 2010 at 10:00 a.m. (Pacific), or as soon thereafter as the appearance can be held, in the hearing room at the MFDA offices located at 650 West Georgia Street, Suite 1220, Vancouver, British Columbia.
The purpose of the first appearance is to schedule the date for the commencement of the hearing of this matter on its merits and to address any other procedural matters and will be open to the public, except as may be required for the protection of confidential matters.
A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 141 Members and their approximately 75,000 Approved Persons with a mandate to protect investors and the public interest.
SOURCE Mutual Fund Dealers Association of Canada
For further information: For further information: Shaun Devlin, Vice-President, Enforcement, (416) 943-4672 or email@example.com