MFDA Hearing Panel issues Reasons for Decision in the matter of Murray Wellman and Michael Wellman

TORONTO, Dec. 22, 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 settlement hearing held in Toronto, Ontario on October 29, 2015 in the matter of Murray Harold Wellman ("Murray Wellman") and Michael John Wellman ("Michael Wellman") (collectively the "Respondents"). The Reasons for Decision relate to the Hearing Panel's acceptance of the settlement agreement (the "Settlement Agreement") entered into between the Respondents and Staff of the MFDA. In its Reasons for Decision dated December 21, 2015, the Hearing Panel confirmed the following sanctions imposed on the Respondents:

Michael Wellman

• a fine in the amount of $10,000;
• costs in the amount of $1,000; and
• shall in the future comply with MFDA Rule 2.1.1.

Murray Wellman

• a fine in the amount of $10,000;
• costs in the amount of $1,000; and
• shall in the future comply with MFDA Rule 2.1.1.

In the Settlement Agreement, the Respondents admitted that:

(i)            between about April 2011 and October 2013, they altered the risk tolerances, investment objectives or investment instructions that were recorded on seven (7) account forms in respect of six (6) clients;
(ii)          between about January 2011 and April 2013, they obtained, maintained and, in some instances, used to process trades, 29 pre-signed account forms and one (1) pre-signed cheque in respect of 16 clients; and
(iii)         on February 21, 2013, they processed a trade in a client account without documenting the client's authorization of the trade, contrary to MFDA Rule 2.1.1.

Copies of the Reasons for Decision and the Settlement Agreement are available on the MFDA website at www.mfda.ca. During the period described in the Reasons for Decision, the Respondents conducted business in the area of Kitchener-Waterloo, Ontario.

The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 101 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]