MFDA Hearing Panel makes findings against Robert Marshall

TORONTO, Jan. 14, 2015 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Robert William Marshall (the "Respondent") by Notice of Hearing (the "Notice of Hearing") dated October 16, 2014.

A disciplinary hearing in this matter was held today in Toronto, Ontario before a Hearing Panel of the MFDA's Central Regional Council. Prior to the hearing, the parties filed an Agreed Statement of Facts (the "Agreed Statement of Facts") in which the Respondent admitted to facts constituting contraventions of MFDA By-laws, Rules or Policies, for which he could be penalized by a Hearing Panel pursuant to  section 24.1 of MFDA By-law No. 1. In particular, the Respondent admitted that:

i.	he engaged in securities related business that was not carried on for the account of the Member and through the facilities of the Member by:
	a)	in August 2006 and March 2012, selling, recommending, referring, or facilitating the sale of an investment fund to two clients outside the Member;
	b)	from 2006 to 2007, selling, recommending, referring, or facilitating the sale of approximately $6 million of a security to clients and individuals, $1.195 million of which was to 21 clients, outside the Member;
	c)	from April 2012 to July 2012, selling, recommending, referring, or facilitating the sale of approximately $2 million of a security, $825,000 of which was to 13 clients, outside the Member;
	contrary to MFDA Rules 1.1.1(a) and 2.1.1.
ii.	he engaged in personal financial dealings with clients, thereby placing his own interests ahead of the clients' interests and creating a conflict or potential conflict of interest that the Respondent failed to address by the exercise of responsible business judgment influenced only by the best interests of the clients, by:
	a)	from 2004 to 2009, failing to disclose in writing to some or all of the clients who invested in the security referred to in Allegation #1(a) above, that he was an advisor to the board of directors of the issuer, for which he received payments of $8,000 to $10,000 annually;
	b)	from June 2012 to November 2012, failing to disclose to at least 9 clients who invested in a pooled investment that he was a director of the issuer of a security in which the pooled investors invested;
	c)	from 2009 to May 2011, soliciting and facilitating three clients to contribute or lend a total of $56,000 to a company in respect of which amounts he personally made monthly repayments to the three clients until 2013; and
	d)	in or about February 2010, lending $7,500 to client DW which client DW repaid in April 2010;
	contrary to MFDA Rules 2.1.4 and 2.1.1.

Following 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 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 $175,000; and
• costs in the amount of $5,000.

 

Copies of the Notice of Hearing and Agreed Statement of Facts are available on the MFDA website at www.mfda.ca. During the period described in the Agreed Statement of Facts, the Respondent carried on business in Oakville, 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]

Related Links

http://www.mfda.ca