MFDA Hearing Panel issues Decision (Misconduct) and Reasons in the matter of Marja Harmer

TORONTO, March 23, 2022 /CNW/ - A Hearing Panel of the Prairie Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") has issued its Decision (Misconduct) and Reasons dated March 22, 2022 ("Decision and Reasons"), in connection with a disciplinary hearing held by electronic hearing in Regina, Saskatchewan on October 19-22, 2021, in the matter of Marja Grobbink Harmer (the "Respondent").

In its Decision and Reasons, the Hearing Panel has outlined its findings of misconduct made against the Respondent. In particular, the Panel found that:

1. between June 2013 and February 2017, the Respondent engaged in personal financial dealings with clients by:
     i.  jointly investing with clients in real estate investments through a company that she owned or operated; or
     ii.  opening and maintaining a joint bank account with clients relating to real estate investments,
   
   which gave rise to a conflict or potential conflict of interest that she failed to disclose to the Member or otherwise address by the exercise of responsible business judgment influenced only by the best interests of the clients, contrary to the policies and procedures of the Member and MFDA Rules 2.1.4, 2.1.1, 2.5.1 and 1.1.2;
   
   
2. between June 2013 and February 2017, the Respondent engaged in securities related business that was not carried on for the account or through the facilities of the Member, when she solicited, recommended, sold or facilitated the sale of investments by clients in real estate investments, contrary to MFDA Rules 1.1.1 and 2.1.1;
   
   
3. between June 2013 and February 2017, the Respondent engaged in outside business activities that were not disclosed to or approved by the Member when she:
     i.  solicited, recommended, sold or facilitated the sale of investment by clients in real estate investments;
     ii.  incorporated companies or served as the President or Director of the companies; or
     iii.  became an independent distributor for a skin care company,
   
   contrary to the Member's policies and procedures and MFDA Rules 1.2.1(c)¹ (now 1.3.2), 2.1.1, 2.5.1 and 1.1.2;
   
   
4. between December 2013 and February 2017, the Respondent engaged in securities related business that was not carried on for the account or through the facilities of the Member, by recommending, selling or facilitating the sale of investment in exempt market or other investment products to clients, contrary to the Member's policies and procedures and MFDA Rules 1.1.1, 1.1.2, 2.1.1, and 2.5.1; and
   
   
5. commencing in July 2019, the Respondent failed to cooperate with an investigation by MFDA Staff into her conduct, contrary to section 22.1 of MFDA By-Law No. 1.

Submissions with respect to sanctions will take place electronically by videoconference before the Hearing Panel on a date to be determined and announced accordingly.

A copy of the Decision (Misconduct) and Reasons is available on the MFDA website at www.mfda.ca. During the period described in the Decision (Misconduct) and Reasons, the Respondent carried on business in the Regina, Saskatchewan 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 80,000 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.

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¹  Effective March 17, 2016, Rule 1.2.1(c) was amended and renumbered as MFDA Rule 1.3.2.

SOURCE Mutual Fund Dealers Association of Canada

Charles Toth, Vice-President, Enforcement, 416-943-4619, [email protected]; Mark Stott, Vice-President, Prairie Region, 403-215-8329, [email protected]