MFDA issues Notice of Hearing regarding Michael Franco

TORONTO, Sept. 8 /CNW/ - The MFDA today announced that it has commenced disciplinary proceedings against Michael Franco (the "Respondent"). MFDA staff alleges in its Notice of Hearing that the Respondent engaged in the following conduct contrary to the By-laws, Rules or Policies of the MFDA:

Allegation #1: Between October 9, 2003 and December 27, 2007, the Respondent had and continued in another gainful occupation that was not disclosed to and approved by the Member by facilitating participation in the total amount of $428,279 by twenty-six (26) clients in four charitable donation programs.

Allegation #2: Between October 9, 2003 and December 27, 2007, the Respondent facilitated the participation of twenty-six (26) clients in four charitable donation programs which were not disclosed to and approved by the Member, thereby failing to comply with the Member's policies and procedures and interfering with the ability of the Member to supervise the Respondent and comply with its obligations under MFDA Rule 2.1.4.

Allegation #3: Between October 9, 2003 and December 27, 2007, the Respondent recommended and facilitated the participation of twenty-six (26) clients in four charitable donation programs without disclosing to the clients that he would receive, in total, $80,176 in commissions for doing so, thereby placing his own interests ahead of the clients and giving rise to an actual or potential conflict of interest between the Respondent and the clients which the Respondent failed to address by the exercise of responsible business judgment influenced only by the best interests of the clients.

The first appearance in this matter will take place by teleconference before a Hearing Panel of the MFDA's Prairie Regional Council in the hearing room located at the offices of the MFDA, 800-6^th Avenue SW, Calgary, Alberta on September 14, 2010 at 10:00 a.m. (Mountain), or as soon thereafter as the appearance can be held.

The purpose of the first appearance is to schedule a date for the commencement of the hearing on the merits and to address any other procedural matters, and will be open to the public, except as may be required for the protection of confidential matters.

A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca.

The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 139 Members and their approximately 73,000 Approved Persons with a mandate to protect investors and the public interest.

For further information:

Shaun Devlin
Vice-President, Enforcement
416-943-4672 or [email protected]