MFDA Hearing Panel makes findings and imposes a partial sanction against Paula Louise Kendrick
TORONTO, Oct. 18, 2017 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Paula Louise Kendrick ("Respondent") by Notice of Hearing dated April 19, 2017 ("Notice of Hearing").
The hearing of this matter on its merits took place on October 17, 2017 in Calgary, Alberta before a three-person Hearing Panel of the MFDA's Prairie Regional Council. Prior to the hearing, the parties filed an Agreed Statement of Facts in which the Respondent admitted to facts constituting contraventions of MFDA By-laws, Rules or Policies, for which she could be penalized by a Hearing Panel pursuant to section 24.1 of MFDA By-law No. 1.
In particular, the Respondent admitted that she:
| a) |
between January 2010 and July 2014, referred 25 clients and 4 other individuals to companies selling an exempt market product, and received at least $74,666.70 in referral fees for doing so, thereby engaging in securities related business that was not carried on for the account of or through the facilities of the Member, and participating in a referral arrangement to which the Member was not a party, contrary to MFDA Rule 1.1.1, and sections 13.7 to 13.10 of National Instrument 31-103; and |
| b) |
between 2011 and 2014, incorrectly denied that she was a party to any referral arrangements in audit forms and annual compliance questionnaires submitted to the Member, thereby misleading the Member and interfering with its ability to supervise her conduct and ensure that its business is compliant with MFDA Rules and applicable securities legislation, contrary to MFDA Rules 2.1.1, 2.5.1, 2.10 and 1.1.2. |
Following submissions from the parties, the Hearing Panel imposed the following partial sanction on the Respondent and advised that it will issue written reasons and additional sanctions in due course:
- a suspension from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member for a period of one (1) week.
Copies of the Notice of Hearing and the 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 the Calgary, Alberta 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 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] ; Mark Stott, Vice-President, Prairie Region, 403-215-8329, [email protected]
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