MFDA Hearing Panel approves settlement agreement with Jeffrey Dunlop

TORONTO, Sept. 6, 2018 /CNW/ - A settlement hearing in the matter of Jeffrey Dunlop (the "Respondent") was held on September 4, 2018 in Toronto, Ontario before a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA").

The Hearing Panel approved the settlement agreement dated September 3, 2018 ("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 three months;
• a fine in the amount of $20,000 ("Fine");
• costs in the amount of $5,000 ("Costs");
• payment of the Fine and Costs shall be made to and received by MFDA Staff as follows:
• $2,500 (Costs) shall be paid upon acceptance of the Settlement Agreement;
• $2,500 (Costs) shall be paid on or before the last business day of the first (1^st) month following the acceptance of the Settlement Agreement;
• $2,000 (Fine) shall be paid on or before the last business day of the second (2^nd) month following the acceptance of the Settlement Agreement;
• $2,000 (Fine) shall be paid on or before the last business day of the third (3^rd) month following the acceptance of the Settlement Agreement;
• $2,000 (Fine) shall be paid on or before the last business day of the fourth (4^th) month following the acceptance of the Settlement Agreement;
• $2,000 (Fine) shall be paid on or before the last business day of the fifth (5^th) month following the acceptance of the Settlement Agreement;
• $2,000 (Fine) shall be paid on or before the last business day of the sixth (6^th) month following the acceptance of the Settlement Agreement;
• $2,000 (Fine) shall be paid on or before the last business day of the seventh (7^th) month following the acceptance of the Settlement Agreement;
• $2,000 (Fine) shall be paid on or before the last business day of the eighth (8^th) month following the acceptance of the Settlement Agreement;
• $2,000 (Fine) shall be paid on or before the last business day of the ninth (9^th) month following the acceptance of the Settlement Agreement;
• $2,000 (Fine) shall be paid on or before the last business day of the tenth (10^th) month following the acceptance of the Settlement Agreement;
• $2,000 (Fine) shall be paid on or before the last business day of the eleventh (11^th) month following the acceptance of the Settlement Agreement;
• if he fails to make any of the payments described above:
• any outstanding balance of the Fine and Costs owed shall immediately become due and payable to the MFDA; an
• he shall be suspended or prohibited from conducting securities related business while in the employ of or associated with a Member of the MFDA until such time as the total outstanding amount of the Fine and Costs owed is paid to the MFDA;
• shall in future comply with MFDA Rules 1.1.2, 1.4(b), 2.5.1, 2.3.1(b) and 2.1.1, and section 4 of MFDA Policy No. 6.

In the Settlement Agreement, the Respondent admitted that:

a)	on July 29, 2015, he opened a new account using Know-Your-Client information that had previously been provided by client MC in April 2015, and processed two trades totaling approximately $468,423 in the accounts of client MC without the knowledge or authorization of client MC, thereby engaging in discretionary trading, contrary to MFDA Rules 1.1.2, 2.5.1, 2.3.1(b) and 2.1.1;
b)	between about September 11, 2015 and October 22, 2015, he failed to report a complaint from client MC regarding two unauthorized trades to the Member, contrary to MFDA Rules 1.4(b) and 2.1.1, and section 4 of MFDA Policy No. 6; and
c)	between about September 21, 2015 and October 3, 2015, he represented to client MC that steps were being taken by the Member to have the trades reversed in response to his complaint, when such steps were not underway, 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 Etobicoke, Ontario.

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 82,000 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