MFDA Hearing Panel approves settlement agreement with Christine Scott
TORONTO, March 14, 2017 /CNW/ - A settlement hearing in the matter of Christine S.P.T. Scott (the "Respondent") was held on March 13, 2017 in Toronto, Ontario before a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ( the "MFDA").
The Hearing Panel approved the settlement agreement (the "Settlement Agreement") between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were imposed on the Respondent:
- a suspension 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) month commencing from the date of the final Order;
- a fine in the amount of $10,000;
- costs in the amount of $5,000; and
- shall in future comply with MFDA Rules 1.1.2, 2.1.1, 2.1.3, 2.3.1(a) and 2.5.1.
In the Settlement Agreement, the Respondent admitted that:
| a) |
in August 2014, she processed a redemption in the amount of $8,545 in client AP's account based upon email instructions received from a third party fraudster, who had gained unlawful access to client AP's email account and subsequently misappropriated the proceeds of the redemption, thereby failing to comply with the Member's policies and procedures which required the Respondent to verify the identity of the client and prohibited her from accepting trade instructions by email, contrary to MFDA Rules 1.1.2, 2.5.1 and 2.1.1; |
| b) |
on August 20, 2014, she requested, obtained, and used a pre-signed account form in order to change a client's banking information with the Member, thereby failing to comply with the Member's policies and procedures, contrary to MFDA Rules 1.1.2 and 2.5.1, and failing to observe high standards of ethics and conduct in the transaction of business, contrary to MFDA Rule 2.1.1; |
| c) |
on August 20, 2014, she processed a redemption in the account of client AP without making inquiries of client AP regarding which funds were to be redeemed and in what amounts, thereby failing to observe high standards of ethics and conduct in the transaction of business, contrary to Rule 2.1.1, and engaging in discretionary trading, contrary to MFDA Rule 2.3.1(a); |
| d) |
on August 25, 2014, she completed portions of an account form wherein the Respondent falsely represented that she had verified the clients' identities, thereby failing to comply with the Member's policies and procedures, contrary to MFDA Rules 1.1.2 and 2.5.1, and failing to observe high standards of ethics and conduct in the transaction of business, contrary to MFDA Rule 2.1.1; and |
| e) |
on September 12, 2014, she disclosed confidential information about the investments held in client MB's account without client MB's authorization, thereby failing to comply with the Member's policies and procedures, contrary to MFDA Rules 1.1.2 and 2.5.1, and failing to observe high standards of ethics and conduct in the transaction of business, and failing to maintain in confidence all information relating to a client and the affairs of a client, contrary to MFDA Rule 2.1.1 and Rule 2.1.3. |
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 Ottawa, 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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