MFDA Hearing Panel approves three settlement agreements

TORONTO, Oct. 28, 2016 /CNW/ - On October 27, 2016, a three-person Hearing Panel (the "Hearing Panel") of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") heard the following three (3) separate settlement proceedings, the particulars of which are:

William Wray

A settlement hearing in the matter of William Wray ("Wray") was held on October 27, 2016, at which the Hearing Panel approved the settlement agreement (the "Settlement Agreement") between Staff of the MFDA and Wray, as a consequence of which Wray:

• has paid a fine in the amount of $15,000;
• has paid costs in the amount of $2,500; and
• shall in the future comply with MFDA Rules 2.2.1 and 2.1.1.

In the Settlement Agreement, Wray admitted that between June 2002 and March 2014, he opened a client account, updated the client's Know-Your-Client information on three (3) occasions and processed trades in the client's account without having communicated directly with the client, thereby failing to use due diligence to learn the essential facts relative to the client and to each order or account accepted, contrary to MFDA Rules 2.2.1 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, Wray carried on business in the Alliston, Ontario area.

Deborah Cummins

A settlement hearing in the matter of Deborah Cummins ("Cummins") was held on October 27, 2016, at which the Hearing Panel approved the settlement agreement (the "Settlement Agreement") between Staff of the MFDA and Cummins, as a consequence of which Cummins:

• shall pay a fine ("Fine") in the amount of $13,000;
• shall pay costs ("Costs") in the amount of $2,500;
• the Fine and Costs shall be paid in seven (7) installments: the first installment in the amount of $2,500 shall be paid on the date of the settlement hearing, the remaining six (6) installments in the amount of $2,166.67 each are payable on or before the final business day of the six (6) months that follow the date of the acceptance of the settlement agreement by the Hearing Panel; and
• shall in future comply with MFDA Rules 1.1.2, 2.5.1 and 2.1.1.

In the Settlement Agreement, Cummins admitted that between:

a)	on or about September 25, 2014, Cummins failed to process three (3) transactions requested by two (2) clients, contrary to MFDA Rule 2.1.1; and
b)	on or about May 27, 2014, Cummins opened a client account and processed a transaction, without obtaining client authorization, contrary to MFDA Rules 1.1.2, 2.5.1 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, Cummins conducted business in in Brantford, Ontario.

Raymond Cheng

A settlement hearing in the matter of Raymond Cheng ("Cheng") was held on October 27, 2016, at which the Hearing Panel approved the settlement agreement (the "Settlement Agreement") between Staff of the MFDA and Cheng, as a consequence of which Cheng:

• has paid a fine in the amount of $5,000;
• has paid costs in the amount of $2,500; and
• shall in future comply with MFDA Rule 2.1.1.

In the Settlement Agreement, Cheng admitted that between January 2012 and May 2015, he obtained, possessed, and in some instances, used to process transactions, 16 pre-signed account forms in respect of 10 (ten) 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, Cheng conducted 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]