MFDA Hearing Panel imposes sanctions on Edward Rempel

TORONTO, Nov. 2, 2015 /CNW/ - The penalty phase of a disciplinary hearing in the matter of Edward Andrew Rempel (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").

In its Decision and Reasons (Misconduct), dated September 3, 2015, the Hearing Panel found that the two (2) allegations made against the Respondent in the Notice of Hearing dated October 15, 2013, had been established, the particulars of which are:

Allegation #1: On September 19, 2011, without the knowledge or prior written consent of the Member, the Respondent contacted client KS, who had filed a complaint against the Respondent with the Member, by telephone in order to:

(a)	persuade client KS to withdraw part of his complaint against the Respondent;
(b)	offer to compensate client KS for the deferred sales charges he would incur if he withdrew his complaint and collapsed the leveraged investment strategy that was the subject matter of the complaint; and
(c)	impose conditions on his proposal to client KS in order to keep the proposal secret,

contrary to MFDA Rules 2.1.1 and 2.1.4, MFDA Policy No. 3 and the Policies and Procedures of the Member;

Allegation #2: On November 28, 2011, prior to learning that client KS had recorded the telephone conversation of September 19, 2011 referred to in Allegation #1, the Respondent sent a written statement to the MFDA in which he falsely denied that he had attempted to:

(a)	persuade client KS to withdraw all or part of his complaint; and
(b)	negotiate a settlement with client KS without the prior written consent of the Member,

contrary to MFDA Rule 2.1.1 and section 22.1 of MFDA By-law No. 1.

After hearing submissions from the parties, the Hearing Panel imposed the following sanctions on the Respondent, and advised that it will issue written reasons for its decision in due course:

(a)	a prohibition from conducting securities related business in any capacity as an Approved Person of, or in association with, any Member of the MFDA until August 5, 2018;
(b)	after August 5, 2018, if the Respondent seeks to become re-registered to conduct securities related business while in the employ of or associated with a Member of the MFDA, the Respondent shall be subject to strict supervision by the Member with which he becomes re-registered for a period of twelve (12) months from the date that he becomes re-registered;
(c)	has paid a fine in the amount of $100,000; and
(d)	has paid costs of this proceeding in the amount of $25,000.

A copy of the Decision and Reasons (Misconduct) is available on the MFDA website at www.mfda.ca. During the period described in the Decision and Reasons (Misconduct), the Respondent carried on business in Brampton, Ontario.

The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 102 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

please contact: Charles Toth, Director, Litigation, 416-943-4619, [email protected]