MFDA Hearing Panel approves five settlement agreements

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Mutual Fund Dealers Association of Canada

Oct 27, 2017, 18:38 ET

TORONTO, Oct. 27, 2017 /CNW/ - On October 26, 2017, a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") heard the following five (5) proceedings, the particulars of which are:

Patricia Wilson

A settlement hearing in the matter of Patricia Lee Wilson ("Wilson") was held on October 26, 2017 at which the Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and Wilson, as a consequence of which the following sanctions were imposed:

•

a fine in the amount of $5,000 ("Fine);

•

costs in the amount of $2,500 ("Costs");

• 

the Fine and Costs shall be paid in certified funds as follows:

a) $2,500 (Costs) payable upon entering into the Settlement Agreement;

b) $1000 on the last business day of November 2017;

c) $1000 on the last business day of December 2017;

d) $1000 on the last business day of January 2018;

e) $1000 on the last business day of February 2018; and

f) $1000 on the last business day of March 2018;           

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if Wilson fails to make any of the payments described above, any outstanding balance of the Fine shall become immediately due and payable to the MFDA and Wilson shall be immediately suspended from conducting securities related business while in the employ of or associated with a Member of the MFDA until such time as the total amount outstanding of the Fine owed by Wilson is paid to the MFDA; and

• 

shall in the future comply with MFDA Rule 2.1.1.

In the Settlement Agreement, Wilson admitted that between February 2014 and November 2015, she obtained, possessed and, in some instances, used to process transactions, 17 pre-signed account forms in respect of nine (9) clients, 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, Wilson carried on business in the Hamilton, Ontario area.

Laverne Peters

A settlement hearing in the matter of Laverne Henry Peters ("Peters") was held on October 26, 2017 at which the Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and Peters, as a consequence of which the following sanctions were imposed:

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

In the Settlement Agreement, Peters admitted that between March 2014 and March 2015, he, or his assistant for whom he was responsible, obtained, possessed and in some instances, used to process transactions, 34 pre-signed account forms in respect of 10 clients, 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, Peters carried on business in the Kanata, Ontario area.

Martine Yargeau

A settlement hearing in the matter of Martine Roxanne Yargeau ("Yargeau") was held on October 26, 2017 at which the Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and Yargeau, as a consequence of which the following sanctions were imposed:

  • a prohibition from conducting securities related business in any capacity while in the employ of or associated with a Member of the MFDA for a period of one (1) year; and
  • shall in the future comply with MFDA Rule 2.1.1.

In the Settlement Agreement, Yargeau admitted that:

a)

on or about October 27, 2014, she falsified two (2) client signatures on an account form and submitted the account form for processing, contrary to MFDA Rule 2.1.1; and

b)

 between January 2013 and February 2015, she obtained, possessed, or used to process transactions, 203 pre-signed account forms in respect of 45 clients, 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, Yargeau carried on business in the Toronto, Ontario area.

Stephen Pilkey

A settlement hearing in the matter of Stephen Pilkey ("Pilkey") was held on October 26, 2017 at which the Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and Pilkey, as a consequence of which the following sanctions were imposed:

  • a fine in the amount of $13,500;
  • costs in the amount of $2,500;
  • in future shall comply with MFDA Rules 2.1.4, 2.5.1, 1.1.2 and 2.1.1.

In the Settlement Agreement, Pilkey admitted that:

a)

between about April 2013 and July 2015 he opened and maintained a bank account in his corporation's name in trust for a client, and with the client's authorization accepted payments from the client's employer into the bank account which he paid to third parties on behalf of the client or invested in the client's mutual fund account with the Member, thereby engaging in conduct giving rise to a conflict or potential conflict of interest that he failed to address by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to the Member's policies and procedures and MFDA Rules 2.1.4, 2.5.1, 1.1.2 and 2.1.1;

b)

between December 2011 and November 2014, he obtained, possessed and, in some instances, used to process transactions, 15 pre-signed account forms in respect of eight (8) clients, contrary to MFDA Rule 2.1.1; and

c)

between July 25, 2007 and June 24, 2015, he falsified two (2) account forms in respect of two (2) clients by altering information on the forms without having the clients initial the alterations, 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, Pilkey carried on business in the Sarnia, Ontario area.

Claude David Fox-Revett

A settlement hearing in the matter of Claude David Fox-Revett ("Fox-Revett") was held on October 26, 2017 at which the Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and Fox-Revett, as a consequence of which the following sanctions were imposed:

  • a reprimand;
  • costs in the amount of $2,500;
  • in the future shall comply with all MFDA By-laws, Rules and Policies, and all applicable securities legislation and regulations made thereunder, including MFDA Rule 2.3.1(b)

In the Settlement Agreement, Fox-Revett admitted that November 13, 2013, he performed eight (8) trades in the accounts of clients RB and CO (the "Clients") without having obtained instructions from the Clients on which funds would be purchased.

A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, Fox-Revett carried on business in the Newmarket, 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 83,000 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]

Related Links

http://www.mfda.ca

Organization Profile

Mutual Fund Dealers Association of Canada

The Mutual Fund Dealers Association of Canada (MFDA) is the national self-regulatory organization (SRO) for the distribution side of the Canadian mutual fund industry. It was established in June 1998 at the initiative of the Canadian Securities Administrators. The MFDA...