MFDA Hearing Panel approves settlement agreement with Jon Snelson
TORONTO, Oct. 18, 2018 /CNW/ - A settlement hearing in the matter of Jon Snelson (the "Respondent") was held today 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 October 15, 2018 ("Settlement Agreement") between Staff of the MFDA and the Respondent, 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 MFDA Member for a period of four years;
- a fine in the amount of $20,000, payable in four monthly instalments of $5,000 each, commencing two months from the date of acceptance of the Settlement Agreement;
- costs in the amount of $5,000, payable as follows:
(i) $2,500 payable on or before the date of the settlement hearing;
(ii) $2,500 payable one month from the date of acceptance of the Settlement Agreement; and - in future shall comply with all MFDA By-laws, Rules and Policies, and all applicable securities legislation and regulation made thereunder, including MFDA Rules 1.1.1, 1.1.2, 1.3, 2.1.1, 2.1.4, and 2.5.1.
In the Settlement Agreement, the Respondent admitted that:
a) |
between October 9, 2014 and March 8, 2015, he failed to disclose to the Member that he had been appointed to the Board of Directors of a junior mining company, thereby engaging in an undisclosed and unapproved outside business activity, contrary to the Member's policies and procedures, and MFDA Rules 1.2.1(c) (now MFDA Rule 1.3), 1.1.2, 2.5.1, and 2.1.1; |
b) |
between August 19, 2015 and November 13, 2015, he recommended, sold and/or facilitated the sale of investments to at least 15 clients and four individuals totaling approximately $310,000 in debentures offered by a junior mining company, thereby engaging in securities related business which was not carried on for the account of the Member or conducted through its facilities, contrary to MFDA Rules 1.1.1, 2.1.4, and 2.1.1; and |
c) |
between August 19, 2015 and November 24, 2015, he failed to provide fulsome and accurate information to the Member with respect to his involvement with a junior mining company, 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 Mississauga, 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, Managing Director, Litigation, 416-943-4619, [email protected]
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