MFDA Hearing Panel approves five settlement agreements

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Mutual Fund Dealers Association of Canada

Dec 04, 2017, 18:56 ET

TORONTO, Dec. 4, 2017 /CNW/ - On November 30, 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:

Pierre Boucher

A settlement hearing in the matter of Pierre George Louis Boucher ("Boucher") was held on November 30, 2017 at which the Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and Boucher, as a consequence of which the following sanctions were imposed:

  • a fine in the amount of $12,500;
  • costs in the amount of $2,500; and
  • in the future shall comply with MFDA Rule 2.1.1.

In the Settlement Agreement, Boucher admitted that:

a)

between June 11, 2014 and March 9, 2015, he, or his assistant for whom he was responsible:



i. photocopied the client signature page from a previously completed account form, attached it to a new account form, and used the form to process a transaction, contrary to MFDA Rule 2.1.1; and



ii. cut a client's signature from a previously completed account form, pasted it onto a new account form, and used the form to process a transaction, contrary to MFDA Rule 2.1.1;

b)

between August 22, 2013 and May 22, 2015, he, or his assistant for whom he was responsible, altered information on three (3) account forms in respect of four (4) clients without having the clients initial the alterations, and used the account forms to process transactions, contrary to MFDA Rule 2.1.1; and

c)

between September 2010 and July 2015, he, or his assistant for whom he was responsible, obtained, possessed and, in some instances, used to process transactions, 27 pre-signed account forms in respect of 19 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, Boucher carried on business in the Ottawa, Ontario area.

Edison Benoit

A settlement hearing in the matter of Edison Gerald Benoit ("Benoit") was held on November 30, 2017 at which the Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and Benoit, as a consequence of which the following sanctions were imposed:

  • a fine in the amount of $10,000;
  • costs in the amount of $2,500; and
  • in the future shall comply with MFDA Rule 2.1.1.

In the Settlement Agreement, Benoit admitted that:

a)

on or about August 24, 2015, in response to a request from the Member that he obtain a new account form signed by a client to confirm that the client was aware of the fees and costs associated with a transaction, he photocopied a previously collected account form, altered the fees and costs disclosure section of the account form, and re-submitted it to the Member to process the transaction, contrary to MFDA Rule 2.1.1;

b)

on or about February, 2015, he altered one (1) account form by altering information on the form without having the client initial the alteration, contrary to MFDA Rule 2.1.1; and

c)

in or around July 2015, he obtained and possessed four (4) pre-signed account forms in respect of one (1) client, 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, Benoit carried on business in the Scarborough, Ontario area.

Larry McBain

A settlement hearing in the matter of Larry Denny McBain ("McBain") was held on November 30, 2017 at which the Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and McBain, as a consequence of which the following sanctions were imposed:

  • a fine in the amount of $5,500 (the "Fine");
  • costs in the amount of $2,500 ("Costs");
  • the Fine and Costs will be paid in certified funds as follows:

i.

$1,000 payable upon entering into the Settlement Agreement;

ii.

$1,000 payable on the last business day of the first month following the Settlement Hearing;

iii.

$1,000 payable on the last business day of the second month following the Settlement Hearing;

iv.

$1,000 payable on the last business day of the third month following the Settlement Hearing;

v.

$1,000 payable on the last business day of the fourth month following the Settlement Hearing;

vi.

$1,000 payable on the last business day of the fifth month following the Settlement Hearing;

vii.

$1,000 payable on the last business day of the sixth month following the Settlement Hearing; and

viii.

$1,000 payable on the last business day of the seventh month following the Settlement Hearing;
  • if the Respondent fails to make any of the payments described above, any outstanding balance of the Fine and Costs shall become immediately due and payable to the MFDA and he 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 and Costs owed is paid to the MFDA;
  • a suspension from acting in the capacity of branch manager for a period of one (1) month;
  • Upon entering into the Settlement Agreement and prior to him being re-designated as a branch manager, he shall successfully complete the branch manager's course offered by either the Canadian Securities Institute or the Investment Funds Institute of Canada; and
  • shall in the future comply with MFDA Rule 2.1.1.

In the Settlement Agreement, McBain admitted that:

a) 

between October 2011 and August 2015, he obtained, possessed and, in some instances, used to process transactions, eight (8) pre-signed account forms in respect of five (5) clients, contrary to MFDA Rule 2.1.1; and

b)

between October 2011 and August 2015, he, acting in the capacity as branch manager, reviewed and approved the use of six (6) pre-signed account forms, contrary to MFDA Rules 2.5.5(f) and 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, McBain carried on business in the Toronto, Ontario area.

Gabrijela Mihajlovic

A settlement hearing in the matter of Gabrijela Mihajlovic ("Mihajlovic") was held on November 30, 2017 at which the Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and Mihajlovic, 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 one (1) year;
  • a fine in the amount of $5,000, payable as follows:

i.

$1,700 payable on or before the date of the settlement hearing;

ii.

$1,700 payable no later than two (2) months from the date that the Settlement Agreement is accepted by the Hearing Panel;

iii.

$1,600 payable no later than four (4) months from the date that the Settlement Agreement is accepted by the Hearing Panel;
  • shall in the future comply with all MFDA By-laws, Rules and Policies, and all applicable securities legislation and regulations made thereunder, including MFDA Rules 2.1.1, 2.1.4, 2.5.1 and 1.1.2.

In the Settlement Agreement, Mihajlovic admitted that on or about August 22, 2014, she borrowed $5,000 from a client, thereby engaging in conduct giving rise to a conflict or potential conflict of interest which she failed to address by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to the policies and procedures of the Member and MFDA Rules 2.1.1, 2.1.4, 2.5.1 and 1.1.2.

A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, Mihajlovic carried on business in the Greater Toronto Area.

Sharad Singh

A settlement hearing in the matter of Sharad Singh ("Singh") was held on November 30, 2017 at which the Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and Singh, as a consequence of which the following sanctions were imposed:

  • a fine in the amount of $12,000;
  • costs in the amount of $2,500; and
  • in the future shall comply with MFDA Rule 2.1.1.

In the Settlement Agreement, Singh admitted that:

a)  

between March 2015 and March 2016, he:

i. 

cut and paste five (5) client signatures from account forms previously signed by the clients onto a new account form;

ii.     

signed the signature of one (1) client on an account form;

iii.

re-used one (1) signature page from an account form that was previously signed by the client;

and submitted the forms for processing, contrary to MFDA Rule 2.1.1.



b)   

on or about June 25, 2015, he obtained, possessed, and used to process a transaction, one (1) pre-signed account form, 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, Singh carried on business in the Milton, 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]

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http://www.mfda.ca

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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...