MFDA announces disciplinary proceeding in respect of Christophe Xavier Taylor

TORONTO, Aug. 16, 2012 /CNW/ - The MFDA today announced that it has commenced disciplinary proceedings in respect of Christophe Xavier Taylor (the "Respondent"). MFDA staff alleges in its Notice of Hearing that the Respondent engaged in the following conduct contrary the By-laws, Rules or Policies of the MFDA:

Allegation #1: Between the Fall of 2005 and April 2009, the Respondent engaged in personal financial dealings with clients by:

a)	participating in the purchase and development of a horse training facility with 2 clients and 1 individual;
b)	participating in the purchase of shares of a private real estate development company with at least 28 clients and 9 other individuals through a corporation of which he was the sole director and officer; and
c)	participating in the purchase of shares of the same real estate development company with at least 4 clients and 1 other individual, which shares were issued in the Respondent's name only;

thereby giving rise to a conflict or potential conflict of interest between the interests of the Respondent and the interests of the clients which the Respondent failed to ensure was addressed by the exercise of responsible business judgment influenced only by the best interests of the clients, contrary to MFDA Rules 2.1.4 and 2.1.1.

Allegation #2: Between April 2007 and April 2009, the Respondent engaged in securities related business that was not carried out for the account and through the facilities of the Member by selling, recommending or facilitating the sale of investments in a real estate development company to clients and other individuals, contrary to MFDA Rules 1.1.1(a) and 2.1.1.

Allegation #3: Between the fall of 2005 and April 2009, the Respondent engaged in outside business activities in respect of which he failed to provide disclosure to, and obtain the approval of, the Member by:

a)	participating in the purchase and development of a horse training facility with 2 clients and 1 individual;
b)	participating in an investment in a real estate development company with at least 28 clients and 9 other individuals through a corporation of which he was the sole director and officer; and
c)	participating in an investment in the same real estate development company with at least 4 clients and 1 other individual, which investment was held in the Respondent's name only;

thereby acting contrary to MFDA Rules 1.2.1(d) and 2.1.1(c).

Allegation #4: Between the fall of 2005 and April 2009, the Respondent failed to comply with the Member's policies and procedures by failing to respond to inquiries by the Member truthfully and, in particular, by failing to disclose to the Member his:

a)	participation in the purchase and development of a horse training facility with 2 clients and 1 other individual;
b)	participation in the purchase of shares of a real estate development company with at least 28 clients and 9 other individuals through a corporation of which he was the sole director and officer; and
c)	participation in the purchase of shares of the same real estate development company with at least 4 clients and 1 other individual, which shares were issued and held in the Respondent's name only

thereby interfering with the ability of the Member to supervise the Respondent and comply with its obligations under MFDA Rule 2.1.4, 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 Prairie Regional Council on August 30, 2012 at 10:00 a.m. (Mountain) in the MFDA hearing room located at 800 - 6th Avenue S.W., Suite 850, Calgary, Alberta. The purpose of the appearance is to set a date for 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 121 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

Shaun Devlin
Vice-President, Enforcement
416-943-4672 or [email protected]