MFDA announces disciplinary proceeding in respect of Collin W. Sulkers

TORONTO, July 11, 2013 /CNW/ - The MFDA today announced that it has commenced disciplinary proceedings in respect of Collin W. Sulkers (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: In about March 2007, the Respondent prepared and submitted applications for investment loans to a lender for clients BB and SB which the Respondent knew or ought to have known contained false, misleading or incorrect information, thereby failing to observe high standards of ethics and conduct in the transaction of business and engaging in conduct unbecoming an Approved Person, contrary to MFDA Rule 2.1.1.
			Allegation #2: In about March 2007, the Respondent failed to ensure that his leverage investment recommendations were suitable for clients BB and SB and in keeping with their investment objectives, having regard to:
				(a)	the clients' relevant "Know-Your-Client" information and financial circumstances, including but not limited to the clients' ability to afford the costs associated with the investment loans and withstand investment losses; and
				(b)	the Member's requirements regarding the use of leveraging, as set out in the Member's policies and procedures;
			contrary to MFDA Rules 2.2.1 and 2.1.1.
			Allegation #3: In about March 2007, the Respondent misrepresented, failed to fully and adequately explain, or omitted to explain the risks, benefits and features of the leverage investment recommendations that he made to clients BB and SB, thereby failing to ensure that the leverage investment recommendations were suitable for the clients and in keeping with the clients' investment objectives, contrary to MFDA Rules 2.2.1 and 2.1.1.
			Allegation #4: Between about October 2006 and July 2008, the Respondent relied upon the lender's approval of investment loans for 38 clients, including clients BB and SB, as the determination that the leverage investment recommendations he made for those clients were suitable and in keeping with the clients' investment objectives, without performing his own assessment of the suitability of the leverage investment recommendations, contrary to MFDA Rules 2.2.1 and 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 12, 2013 at 10:00 a.m. (Mountain) in the hearing room located at the MFDA office, 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 115 Members and their approximately 80,000 Approved Persons with a mandate to protect investors and the public interest.

SOURCE: Mutual Fund Dealers Association of Canada

Hugh Corbett
Managing Director, Enforcement
416-943-4685
[email protected]

Mark Stott
Vice-President, Prairie Region
403-215-8329
[email protected]