MFDA Hearing Panel issues Reasons for Decision in the matter of Bradley Crompton, Michelle Crompton, and William Henderson
TORONTO, March 27, 2015 /CNW/ - A Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") has issued its Reasons for Decision in connection with a disciplinary hearing held in Toronto, Ontario on March 9, 2015 in respect of Bradley Gerard Crompton ("Bradley Crompton"), Michelle Ann Crompton ("Michelle Crompton"), and William Craig Henderson ("Henderson"). In its Reasons for Decision dated March 26, 2015, the Hearing Panel confirmed that the following allegations had been established:
As against Bradley Crompton:
| Allegation #1: Between May 2007 and August 2007, Bradley Crompton: |
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| a) |
facilitated a stealth advising arrangement whereby non-registered persons engaged in securities related business with clients on behalf of the Member, contrary to MFDA Rules 1.1.1(c) and 2.1.1; and |
| b) |
failed to perform the necessary due diligence to learn the essential facts relative to the clients to ensure that the investments and the leveraged investment strategy recommended to and implemented in the accounts of the clients was suitable for the clients and in keeping with the clients' investment objectives, contrary to MFDA Rules 2.2.1 and 2.1.1. |
| Allegation #2: From September 2010 to October 2014, Bradley Crompton failed to attend an interview requested by MFDA Staff during the course of an investigation, contrary to section 22.1 of MFDA By-law No. 1. |
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From October 2014, Bradley Crompton did mitigate his failure by attending and completing an interview with Staff of the MFDA.
As against Michelle Crompton:
| Allegation #4: Between May 2007 and October 2008, Michelle Crompton, in her capacity as the designated branch manager, failed to adequately supervise a branch office and failed to ensure that the business conducted on behalf of the Member by Approved Persons at the branch office was in compliance with MFDA By-law, Rules and Policies and applicable securities legislation, contrary to MFDA Rules 2.5.3(b), 2.1.1 and MFDA Policy No. 2. |
| Allegation #5: From September 2010 to October 2014, Michelle Crompton failed to attend an interview requested by MFDA Staff during the course of an investigation, contrary to section 22.1 of MFDA By-law No. 1. |
From October 2014, Michelle Crompton did mitigate her failure by attending and completing an interview with Staff of the MFDA.
As against Henderson:
| Allegation #5: From September 2010 to October 2014, Henderson failed to attend an interview requested by MFDA Staff during the course of an investigation, contrary to section 22.1 of MFDA By-law No. 1. |
From October 2014, Henderson did mitigate his failure by attending and completing an interview with Staff of the MFDA.
The Hearing Panel set aside April 15, 2015 at 10:00 a.m. (Eastern) in the hearing room at the MFDA office, located at 121 King Street West, Suite 1000, Toronto, Ontario, in order to hear penalty submissions. The proceeding will continue to be open to the public, except as may be required for the protection of confidential matters.
A copy of the Reasons for Decision is available on the MFDA website at www.mfda.ca.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 105 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.
SOURCE Mutual Fund Dealers Association of Canada
Shaun Devlin, Senior Vice-President, Member Regulation, Enforcement, 416-943-4672, [email protected]
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