MFDA Hearing Panel approves three settlement agreements

TORONTO, Nov. 25, 2016 /CNW/ - On November 24, 2016, a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") heard the following three (3) proceedings, the particulars of which are:

Kallol Ghose

A settlement hearing in the matter of Kallol Ghose ("Ghose") was held on November 24, 2016 at which the Hearing Panel approved the settlement agreement (the "Settlement Agreement") between Staff of the MFDA and Ghose, as a consequence of which he:

• has paid a fine in the amount of $5,000;
• has paid costs in the amount of $2,500;
• shall successfully complete the branch manager's course offered by either the Canadian Securities Institute or the Investment Funds Institute of Canada within six (6) months of the acceptance of the settlement agreement by the Hearing Panel; and
• shall in future comply with MFDA Rule 2.1.1.

In the Settlement Agreement, Ghose admitted that between February 2010 and October 2014, he, acting in his capacity as branch manager, reviewed and approved the use of ten (10) account forms that the Respondent knew or ought to have known had been altered without obtaining client initials authorizing the alterations, 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, Ghose carried on business in the Etobicoke, Ontario area.

Bruce Gilboord

A settlement hearing in the matter of Bruce Gilboord ("Gilboord") was held on November 24, 2016 at which the Hearing Panel approved the settlement agreement (the "Settlement Agreement") between Staff of the MFDA and Gilboord, as a consequence of which he:

• shall be prohibited for a period of three (3) months from conducting securities related business in any capacity while in the employ of or associated with any Member of the MFDA;
• has paid costs in the amount of $2,500; and
• shall in future comply with MFDA Rule 2.1.1.

In the Settlement Agreement, Gilboord admitted that between June 2004 and March 2011, he obtained, possessed, and in some instances, used to process transactions, 32 pre-signed account forms in respect of 17 clients and one (1) prospective client, 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, Gilboord carried on business in the Toronto, Ontario area.

Marc Monforton

A settlement hearing in the matter of Marc Monforton ("Monforton") was held on November 24, 2016 at which the Hearing Panel approved the settlement agreement (the "Settlement Agreement") between Staff of the MFDA and Monforton, as a consequence of which he:

• shall pay a fine in the amount of $12,000 (the "Fine");
• The Fine shall be payable in 12 installments in the amount of $1,000 each, which installments are due on or before the final business day of the 12 months that follow the date of the acceptance of the settlement agreement by the Hearing Panel;
• shall be prohibited from conducting securities related business in any capacity while in the employ of or associated with any Member of the MFDA for a period of six (6) months from the date of the settlement hearing; and
• has paid costs in the amount of $2,500.

In the Settlement Agreement, Monforton admitted that between January 2011 and July, 2015, he referred at least eight (8) clients and 12 individuals to a mortgage broker to invest in syndicated mortgage products and received at least $10,400 in referral fees, thereby participating in a referral arrangement that did not comply with MFDA Rules 2.4.2, 2.5.1, 1.1.2, 2.1.4 and National Instrument 31-103.

A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, Monforton carried on business the Goderich, 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]