MFDA announces settlement hearing to take place in respect of Dino DeRosa
TORONTO, Oct. 3, 2018 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Dino DeRosa ("Respondent") by Notice of Hearing dated November 20, 2017.
As the result of a settlement agreement entered into between Staff of the MFDA and the Respondent, the settlement hearing will take place on October 4, 2018, commencing at 10:00 a.m. (Eastern), or as soon thereafter as the matter can be heard, in the hearing room at the offices of the MFDA, located at 121 King Street West, Suite 1000, Toronto, Ontario.
The subject matter of the proposed settlement agreement concerns matters for which he may be disciplined pursuant to ss. 20 and 24.1.1 of By-law No. 1 of the MFDA. In particular, the settlement agreement concern allegations that the Respondent:
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between 2006 and April 2013, in his capacity as Chief Compliance Officer of W. H. Stuart Mutuals Ltd., failed to identify regulatory concerns and take adequate supervisory action including completing reasonable supervisory investigations in response to red flags that indicated, or could have revealed, that W. H. Stuart's principals and Approved Persons were soliciting off-book investments in promissory notes issued by W. H. Stuart, its principals and related entities, contrary to MFDA Rules 1.1.1, 2.5.3 and 2.1.1; |
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b) |
between February 2011 and April 2013, in his capacity as Chief Compliance Officer of W. H. Stuart Mutuals Ltd., received complaints concerning the accounts of clients SI, DR and MD but failed to ensure that: |
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i. |
the complaints were reported to the MFDA on the Member Event Tracking System; |
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reasonable supervisory investigations into the subject matter of the complaints were conducted; |
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the complaints were dealt with promptly and fairly; and |
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records were maintained of the investigation and proposed resolution of the complaints; contrary to MFDA Rules 1.2.2 (now 1.4), 2.1.1, 2.11, 2.1.4, 2.5.3 and MFDA Policy Nos. 3 and 6 |
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c) |
between December 2011 and April 2013, signed the certificate of partners or directors on behalf of W. H. Stuart Mutuals Ltd. that accompanied the submission of the Member's monthly and annual financial reports to the MFDA when he knew or ought to have known that the financial reports contained inaccurate financial information, contrary to MFDA Rules 3.5.1 and 1.1.2 and MFDA Rule 2.1.1. |
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MFDA settlement hearings are typically held in the absence of the public pursuant to section 20.5 of MFDA By-law No. 1 and Rule 15.2(2) of the MFDA Rules of Procedure. If the Hearing Panel accepts the settlement agreement, then the proceeding will become open to the public and a copy of the decision of the Hearing Panel and the settlement agreement will be made available at www.mfda.ca.
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 Markham, 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 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, Director, Litigation, 416-943-4619, [email protected]
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