MFDA Hearing Panel accepts settlement agreement with Keith Bates

TORONTO, Oct. 8, 2020 /CNW/ - A settlement hearing in the matter of Keith Bates ("Respondent") resumed by electronic hearing today in Toronto, Ontario before a two-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA").

The Hearing Panel accepted the settlement agreement dated September 4, 2020 ("Settlement Agreement") between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were imposed on the Respondent:

• a prohibition from conducting securities related business while in the employ of or associated with a Member of the MFDA for a period of 3 months;
• a fine in the amount of $27,500;
• costs in the amount of $2,500; and
• shall in the future comply with MFDA Rule 2.1.1.

In the Settlement Agreement, the Respondent admitted that:

1. on December 5, 2017, he copied the signature page from an account form previously signed by the client and re-used the signature page to complete a new account form, and submitted the new account form to the Member for processing, contrary to MFDA Rule 2.1.1; and
2. between May 2014 and October 2018, he altered and used to process transactions, 96 account forms in respect of approximately 92 clients, by altering information on the account forms without having the client initial the alterations, contrary to MFDA Rule 2.1.1;
3. between May 2014 and October 2018, he obtained, possessed, and in some instances, used to process transactions, 117 pre-signed account forms in respect of approximately 33 clients, contrary to MFDA Rule 2.1.1; and
4. between approximately January 2018 and November 2018, he held blank bank cheque books of 2 clients in a client file maintained by the Respondent and thereby failed to abide by the standard of conduct required of an Approved Person, contrary to MFDA Rule 2.1.1.

A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, the Respondent conducted business in the Hamilton, 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 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, Vice President, Enforcement, 416-943-4619, [email protected]

Related Links

www.mfda.ca