MFDA Hearing Panel approves four settlement agreements
TORONTO, March 31, 2017 /CNW/ - On March 30, 2017, a three-person Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") heard the following four (4) proceedings, the particulars of which are:
Philip Lewin
A settlement hearing in the matter of Philip Anthony Lewin ("Lewin") was held on March 30, 2017 at which the Hearing Panel approved the settlement agreement (the "Settlement Agreement") between Staff of the MFDA and Lewin, as a consequence of which the following sanctions were imposed:
- a fine in the amount of $8,000;
- costs in the amount of $2,500;
- the Respondent shall be prohibited from acting in a supervisory capacity for a period of 3 months while in the employ of or associated with any MFDA Member;
- the Respondent shall successfully complete the branch manager course offered by the Canadian Securities Institute within 1 year of the settlement hearing date; and
- shall in future comply with MFDA Rule 2.5.5(f) and 2.1.1.
In the Settlement Agreement, Lewin admitted that:
| a) |
between October 2012 and January 2015, he obtained and used to process transactions, 22 pre-signed account forms in respect of five (5) clients, contrary to MFDA Rule 2.1.1.; and |
| b) |
between October 2012 and January 2015, he, acting in the capacity as branch manager, reviewed and approved the use of 22 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, Lewin carried on business in the Kitchener, Ontario area.
Jeffrey Beck
A settlement hearing in the matter of Jeffrey Michael Beck ("Beck") was held on March 30, 2017 at which the Hearing Panel approved the settlement agreement (the "Settlement Agreement") between Staff of the MFDA and Beck, as a consequence of which the following sanctions were imposed:
- a fine in the amount of $4,000;
- costs in the amount of $2,500; and
- shall in future comply with MFDA Rule 2.1.1.
In the Settlement Agreement, Beck admitted that between February 2014 and September 2014, he obtained, possessed and used to process transactions, seven (7) pre-signed account forms in respect of six (6) 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, Beck carried on business in the Greater Toronto Area.
David Careless
A settlement hearing in the matter of David Careless ("Careless") was held on March 30, 2017 at which the Hearing Panel approved the settlement agreement (the "Settlement Agreement") between Staff of the MFDA and Careless, as a consequence of which the following sanctions were imposed:
- costs in the amount of $1,500;
- a prohibition from conducting securities related business in any capacity while in the employ of or associated with a MFDA Member for a period of six (6) months;
- the Respondent shall successfully complete the Conduct and Practices Handbook course offered by the Canadian Securities Institute within one year of the date of the acceptance of the settlement agreement by the Hearing Panel; and
- shall in future comply with MFDA Rule 1.1.2, 2.5.1, 2.1.1.
In the Settlement Agreement, Careless admitted that:
| a) |
on or about February 3, 2014, he removed a hold placed by the Member on his RRSP Mutual Fund Account in order to complete a transaction, thereby failing observe a high standard of conduct and ethics in the transaction of business, and in violation of the Member's policies and procedures, contrary to MFDA Rules 2.1.1, 1.1.2 and 2.5.1; and |
| b) |
on March 18, 2014, he falsified a client signature on an 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, Careless carried on business in the Greater Toronto Area.
Gilbert Jean
A settlement hearing in the matter of Gilbert Jean ("Jean") was held on March 30, 2017 at which the Hearing Panel approved the settlement agreement (the "Settlement Agreement") between Staff of the MFDA and Jean, as a consequence of which the following sanctions were imposed:
- costs in the amount of $3,000;
- a prohibition from conducting securities related business in any capacity while in the employ of or associated with a MFDA Member for a period of six (6) months; and
- shall in future comply with MFDA Rule 2.5.1, 1.1.2 and 2.1.1.
In the Settlement Agreement, Jean admitted that:
| a) |
on or about March 17, 2015, he processed a redemption in a client account at the request of someone other than the client, contrary to MFDA Rule 2.1.1; |
| b) |
on or about March 5, 2015, he failed to keep an adequate record of a trade, thereby failing to comply with the Member's Policies and Procedures, contrary to MFDA Rules 1.1.2, 2.5.1 and 2.1.1; and |
| c) |
between December 2009 and August 2015, he obtained, possessed, and in some instances, used to process transactions, 18 pre-signed account forms, 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, Jean carried on business in the Greater Toronto 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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