TORONTO, July 2 /CNW/ - The MFDA today announced that it has issued a Notice of Settlement Hearing regarding the presentation, review and consideration of two proposed settlement agreements by a Hearing Panel of the MFDA's Central Regional Council.
One of the settlement agreements will be between MFDA Staff and Colin Corner, Heather Halladay, Richard Moore and James Rainbird. The other settlement agreement will be between Staff and John Joseph Hanson. Both agreements involve matters for which the Respondents may be disciplined by a Hearing Panel pursuant to MFDA By-laws.
The subject matter of the proposed settlement agreements concerns allegations that between June 2003 and April 2007 the Respondents:
(a) in their capacity as mutual fund salespersons, using training and
information provided by the Respondents' Member and as a result of
deficiencies in that training and information, sold exempt market
securities to clients who did not qualify as accredited investors and
whose risk tolerance was less than high, contrary to MFDA Rule 2.1.1
(b) in their supervisory capacity as branch managers, by complying with a
directive from their Member and in so complying, failed to discern
that the Member's Compliance department and its senior management
were rendering themselves incapable of conducting second-tier reviews
necessary for the Member to properly supervise client accounts,
contrary to MFDA Rule 2.5.3(b)(i).
The settlement hearing is scheduled to commence at 10:00 a.m. (Eastern) on Tuesday, July 6, 2010 in the hearing room located at the offices of the MFDA at 121 King Street West, Suite 1000, Toronto, Ontario and will be open to the public, except as may be required for the protection of confidential matters.
A copy of the Notice of Settlement 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 139 Members and their approximately 73,000 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 firstname.lastname@example.org