MFDA Hearing Panel makes findings against Ioana Beckford
TORONTO, Jan. 27, 2015 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Ioana Beckford (the "Respondent") by Notice of Hearing dated June 23, 2014 (the "Notice of Hearing").
The hearing of this matter on its merits was held today in Toronto, Ontario before a three-member Hearing Panel of the MFDA's Central Regional Council. After hearing submissions from Staff of the MFDA, the Hearing Panel found that the four (4) allegations concerning the Respondent set out in the Notice of Hearing had been established. In particular, the Hearing Panel made the following findings of misconduct:
Allegation #1: Between December 17, 2009 and April 2010, the Respondent accepted and held a power of attorney for property and personal care from client PR, and was appointed as the executrix of client PR's estate in her will, contrary to MFDA Rules 2.3.1, 2.1.4 and 2.1.1.
Allegation #2: Commencing December 2009, the Respondent engaged in personal financial dealings with client PR by engaging in the following conduct:
| a) |
accepting designation as the sole beneficiary of client PR's estate in her will; |
| b) |
becoming a joint owner of client PR's condominium; |
| c) |
borrowing approximately $120,000 through a Home Equity Line of Credit ("HELOC") which was secured against client PR's condominium; and |
| d) |
transferring the $120,000 borrowed from client PR through the HELOC into the Respondent's personal bank account; |
thereby giving rise to conflicts or potential conflicts of interest between the Respondent and client PR which the Respondent failed to address by the exercise of responsible business judgment influenced only by the best interests of client PR, contrary to MFDA Rules 2.1.4 and 2.1.1.
Allegation #3: Between August 2009 and April 2013, the Respondent had and continued in three gainful occupations which were not disclosed to and approved by the Member, contrary to MFDA Rules 1.2.1(c) and 2.1.1.
Allegation #4: Commencing in May 2013, the Respondent failed to provide information and documentation requested by the MFDA during the course of an investigation, contrary to s. 22.1 of MFDA By-law No. 1.
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 permanent prohibition on the authority of the Respondent to conduct securities related business in any capacity while in the employ of, or associated with, any MFDA Member;
- a fine in the amount of $200,000; and
- costs in the amount of $10,000.
A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Hearing, the Respondent carried on business in Toronto, Ontario.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 107 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
Hugh Corbett, Managing Director, Enforcement, 416-943-4685, [email protected]
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