MFDA announces settlement hearing to take place in respect of Paul Halloran
TORONTO, April 25, 2019 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Paul Michael Halloran ("Respondent") by Notice of Hearing dated January 14, 2019.
As the result of a settlement agreement entered into between Staff of the MFDA and the Respondent, the settlement hearing will take place on April 29, 2019, 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, 121 King Street West, Suite 1000, Toronto, Ontario.
The subject matter of the proposed settlement agreement concerns matters for which the Respondent may be disciplined pursuant to ss. 20 and 24.1.1 of By-law No. 1 of the MFDA. In particular, the settlement agreement concerns allegations that the Respondent:
a) |
between October 11, 2016 and November 4, 2016, processed redemptions totalling $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; |
b) |
on October 11, 2016, executed and submitted to the Member in order to process a redemption a "Record of Verbal Instructions" form that contained inaccurate information, contrary to MFDA Rule 2.1.1; and |
c) |
on November 4, 2016, 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. |
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 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 81,000 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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