MFDA announces settlement hearing to take place in respect of Robert Johnston
TORONTO, July 26, 2019 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Robert Douglas Johnston ("Respondent") by Notice of Hearing dated May 9, 2019.
As specified in the Notice of Hearing, the first appearance in this matter took place on July 24, 2019 by teleconference before a Hearing Panel of the MFDA's Prairie Regional Council.
As the result of a settlement agreement entered into between Staff of the MFDA and the Respondent, the settlement hearing will take place on November 5, 2019, commencing at 10:00 a.m. (Central), or as soon thereafter as the matter can be heard, in the hearing room at the Manitoba Securities Commission, 500-400 St. Mary Avenue, Winnipeg, Manitoba.
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 August 2014 and April 2015, obtained, possessed, and used to process transactions, seven pre-signed account forms in respect of four clients, contrary to MFDA Rule 2.1.1; |
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b) |
between October 2012 and February 2016, altered and used to process transactions, 14 client forms in respect of 12 clients, by altering information on the account forms without having the clients initial the alterations, contrary to MFDA Rule 2.1.1; and |
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c) |
between September 2010 and March 2016: |
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i. |
directed his assistant, for whom he was responsible, to falsely indicate that she had witnessed client signatures on two Limited Trade Authorization forms; and |
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ii. |
submitted one client Limit Trading Authorization form to the Member for processing that did not meet the Member's signature verification requirements; |
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thereby failing to comply with the Member's policies and procedures, contrary to MFDA Rules 2.5.1, 1.1.2, and 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 Winnipeg, Manitoba 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 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]; Mark Stott, Vice, President, Prairie Region, 403-215-8329, [email protected]
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