MFDA announces disciplinary proceeding in respect of Robert Marshall
TORONTO, Oct. 23, 2014 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") has commenced disciplinary proceedings in respect of Robert William Marshall (the "Respondent"). In its Notice of Hearing dated October 16, 2014, Staff of the MFDA alleges that the Respondent engaged in the following conduct contrary the By-laws, Rules and/or Policies of the MFDA:
| Allegation #1: |
The Respondent engaged in securities related business that was not carried on for the account of the Member and through the facilities of the Member by: |
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| a) |
in August 2006 and March 2012, selling, recommending, referring, or facilitating the sale of a security to two clients outside the Member; |
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| b) |
from 2006 to 2007, selling, recommending, referring, or facilitating the sale of approximately $6 million of a security to clients and individuals, $1.195 million of which was to 21 clients, outside the Member; |
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| c) |
from April 2012 to July 2012, selling, recommending, referring, or facilitating the sale of approximately $2 million of a security, $825,000 of which was to 13 clients, outside the Member; |
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| contrary to MFDA Rules 1.1.1(a) and 2.1.1. |
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| Allegation #2: |
In the event, or to the extent, the activities described in Allegation #1 did not constitute securities related business, then the Respondent had and continued in another gainful occupation in respect of those same activities that was not disclosed to and approved by the Member, contrary to MFDA Rules 1.2.1(c) and 2.1.1. |
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| Allegation #3: |
The Respondent engaged in personal financial dealings with clients, thereby placing his own interests ahead of the clients' interests and creating a conflict or potential conflict of interest that the Respondent failed to address by the exercise of responsible business judgment influenced only by the best interests of the clients, by: |
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| a) |
from 2004 to 2009, failing to disclose to the clients who invested in the security referred to in Allegation #1(a) above, that he was an advisor to the board of directors of the issuer, for which he received payments of $8,000 to $10,000 annually; |
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| b) |
from June 2012 to November 2012, failing to disclose to at least 9 clients who invested in a pooled investment that he was a director of the parent company of the issuer of a security in which the pooled investors invested; |
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| c) |
from 2009 to May 2011, soliciting and facilitating three clients to contribute or lend a total of $56,000 to a company in respect of which amounts he personally made monthly repayments to the three clients until 2013; and |
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| d) |
in or about February 2010, lending $7,500 to client DW which client DW repaid in April 2010; |
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| contrary to MFDA Rules 2.1.4 and 2.1.1. |
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The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on December 1, 2014, at 9:30 a.m. (Eastern), in order to schedule a date for the commencement of the hearing on the merits and to address any other procedural matters. The first appearance 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. During the period described in the Notice of Hearing, the Respondent carried on business in Oakville, Ontario.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 108 Members and their approximately 80,000 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
Hugh Corbett, Managing Director, Enforcement, 416-943-4685, [email protected]
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