MFDA announces disciplinary proceeding in respect of George Yamamoto

TORONTO, Nov. 10, 2022 /CNW/ - The Mutual Fund Dealers Association of Canada (the "MFDA") has commenced disciplinary proceedings in respect of George Yamamoto (the "Respondent"). In its Notice of Hearing dated October 7, 2022 (the "Notice of Hearing"), Staff of the MFDA alleges that the Respondent engaged in the following conduct contrary to the By-laws, Rules and/or Policies of the MFDA:

Allegation #1: Between about November 2018 and August 2020, the Respondent was aware that he was or would be named as the recipient of legacies in the wills of clients A and B, thereby giving rise to conflicts or potential conflicts of interest that the Respondent failed to disclose to the Member or otherwise address by the exercise of responsible business judgment influenced only by the best interests of the clients, contrary to the Member's policies and procedures and MFDA Rules 2.1.4¹, 2.1.1 and 1.1.2 (as it relates to Rule 2.5.1).

Allegation #2: Between about July 29, 2020 and August 6, 2020, the Respondent solicited monies from clients A and B, thereby:

a)      giving rise to conflicts or potential conflicts of interest that the Respondent failed to disclose to the Member or otherwise address by the exercise of responsible business judgment influenced only by the best interests of the clients, contrary to the Member's policies and procedures and MFDA Rules 2.1.4 and 1.1.2 (as it relates to Rule 2.5.1); or 
b)      contravening the standard of conduct required of Approved Persons in MFDA Rule 2.1.1.

Allegation #3: On or about August 7, 2020, the Respondent disclosed information regarding the business and affairs of clients A and B to client A's son, without the consent of the clients, thereby:

a)      failing to maintain the clients' information in confidence, contrary to the Member's policies and procedures and MFDA Rules 2.1.3 and 1.1.2 (as it relates to Rule 2.5.1); or 
b)      contravening the standard of conduct required of Approved Persons in MFDA Rule 2.1.1.

The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on January 12, 2023 at 10:00 a.m. (Eastern), or as soon thereafter as the appearance can be held, to schedule a date for the commencement of the hearing on the merits and to address any other procedural issues. The appearance will be open to the public, except as may be required for the protection of confidential matters. Members of the public who would like to listen to the teleconference should contact [email protected] to obtain particulars.

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 in the Toronto, Ontario area.

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 76,695 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.

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^1 On June 30, 2021, MFDA Rule 2.1.4 was amended to conform with client focused reform amendments to National Instrument 31-103 that came into effect on the same day.  As the conduct addressed in the Notice of Hearing pre-dated the amendment to this Rule, all contraventions set out in the Notice of Hearing that make reference to that Rule concern the version of the Rule that was in effect between February 27, 2006 and June 30, 2021.

SOURCE Mutual Fund Dealers Association of Canada

Charles Toth, Vice-President, Enforcement, 416-943-4619, [email protected]