MFDA announces disciplinary proceeding in respect of Paul Halloran
TORONTO, Jan. 31, 2019 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") has commenced disciplinary proceedings in respect of Paul Michael Halloran ("Respondent"). In its Notice of Hearing dated January 14, 2019 ("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 October 11, 2016 and November 4, 2016, the Respondent processed redemptions totaling $171,270.80 from a client's accounts, based on email instructions from a fraudster who had gained unlawful access to the client's email account, without taking steps to verify he was communicating with the client, contrary to the Member's policies and procedures and MFDA Rules 2.1.1, 1.1.2, and 2.5.1.
Allegation #2: On October 11, 2016, the Respondent executed and submitted to the Member in order to process a redemption a "Record of Verbal Instructions" form that contained false and misleading information, contrary to MFDA Rule 2.1.1.
Allegation #3: On November 4, 2016, the Respondent engaged in discretionary trading in a client's accounts, contrary to the Member's policies and procedures and MFDA Rules 2.3.1(b), 1.1.2, 2.5.1, and 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 February 26, 2019 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 matters. 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 carried on business out of a branch office located in Belleville, Ontario.
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 82,000 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.
SOURCE Mutual Fund Dealers Association of Canada
Charles Toth, Managing Director, Litigation, 416-943-4619, [email protected]
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