MFDA announces disciplinary proceeding in respect of John Mark Wright

TORONTO, July 5, 2013 /CNW/ - The MFDA today announced that it has commenced disciplinary proceedings in respect of John Mark Wright (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 2006 and 2011, the Respondent had and continued in another gainful occupation that was not disclosed to and approved by the Member by:

i)     acting as a shareholder, director, managing partner and vice-president of a closely-held Bermudian corporation; and
ii)     acting as an agent or employee for a Bermudian corporation affiliated with the Bermudian corporation in (a) above; and
iii)     selling, recommending, referring or facilitating the sale of $1,028,885.42 of an offshore annuity insurance product issued by a company to at least 4 clients of the Member;

contrary to MFDA Rules 1.2.1(c) and 2.1.1.

Allegation #2: Between 2007 and 2008, 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, referring or facilitating the sale, through the two Bermudian corporations, of:

i)     $1,388,000 of shares of one of the Bermudian corporations to at least 11 clients of the Member; and
ii)     $431,640 of an off-shore mutual fund offered by one of the Bermudian corporations to at least 6 clients of the Member;

contrary to MFDA Rules 1.1.1(a) and 2.1.1.

Allegation #3: Between 2007 and 2008, the Respondent engaged in activities that gave rise to conflicts or potential conflicts of interest between his interests and the interests of clients, which conflicts he failed to address by the exercise of responsible business judgment influenced only by the best interests of the clients by selling, recommending or facilitating the sale, through the two Bermudian corporations in which he had a direct or indirect interest, of:

i)     $1,388,000 of shares of one of the Bermudian corporations to at least 11 clients of the Member; and
ii)     $431,640 of an off-shore mutual fund offered by one of the Bermudian corporations to at least 6 clients of the Member;

contrary to MFDA Rules 2.1.4, 2.4.2 and 2.1.1.

Allegation #4: Between 2007 and 2008, the Respondent entered into a referral arrangement with a Bermudian corporation in respect of the sale of shares of one of the Bermudian corporations pursuant to which he was paid or entitled to receive referral fees or commissions of at least $57,750, contrary to MFDA Rules 2.4.2(b) and 2.1.1.

The first appearance in this matter will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on July 18, 2013 at 10:00 a.m. (Eastern) in the MFDA hearing room located at 121 King Street West, Suite 1000, Toronto, Ontario. 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]