MFDA Hearing Panel makes findings and imposes sanctions against Allan Rombough
TORONTO, Aug. 22, 2018 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Allan Douglas Rombough ("Respondent") by Notice of Hearing dated January 19, 2018.
A disciplinary hearing in this matter was held today in Toronto, Ontario before a three-member Hearing Panel of the MFDA's Central Regional Council. Following submissions from Staff of the MFDA, the Hearing Panel found that the three 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 February 2009 and April 2014, the Respondent photocopied signature pages from Know-Your-Client forms that had been signed by clients and re-used the signature pages to complete 24 additional Know-Your-Client forms in respect of nine clients, contrary to MFDA Rule 2.1.1.
Allegation #2: Between April 2007 and February 2012, the Respondent obtained, possessed, and in four instances, submitted to the Member for processing, six pre-signed account forms in respect of four clients, contrary to MFDA Rule 2.1.1.
Allegation #3: Commencing in about September 2016, the Respondent failed to cooperate with MFDA Staff during the course of an investigation into his conduct, contrary to section 22.1 of MFDA By-law No. 1.
After hearing submissions from Staff of the MFDA as to penalty, the Hearing Panel imposed the following sanctions on the Respondent and advised that it will issue written reasons in due course:
| a) |
a permanent prohibition from conducting securities related business in any capacity while in the employ of, or in association with, any MFDA Member; |
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| b) |
a fine in the amount of $70,000, the particulars of which are: |
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| i. |
$10,000 with respect to allegations #1 and #2; |
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| ii. |
$60,000 with respect to allegation #3; and |
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| c) |
costs in the amount of $5,000. |
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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 the Toronto, Ontario 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]
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