MFDA issues Notice of Settlement Hearing in respect of Darragh Pender
TORONTO, Oct. 31, 2018 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") announced that it has issued a Notice of Settlement Hearing dated October 16, 2018 regarding the presentation, review and consideration of a proposed settlement agreement by a Hearing Panel of the MFDA's Central Regional Council.
The settlement agreement will be between Staff of the MFDA and Darragh John Anthony Pender ("Respondent") and involves matters for which he may be disciplined by a Hearing Panel pursuant to MFDA By-laws. The proposed settlement agreement concerns allegations that the Respondent:
- between August 1, 2016 and December 31, 2016, enabled Approved Person EC to complete new account application forms ("NAAFs") and Know-Your-Client ("KYC") forms to facilitate the transfer of 344 clients to the Respondent's Member when EC was not registered with the Member, thereby permitting EC to engage in registerable activity and securities related business outside the scope of his registration, contrary to MFDA Rules 1.1.1, 1.1.3(a), and 2.1.1;
- between August 1, 2016 and December 31, 2016, executed NAAFs and KYC forms for 344 clients as the Approved Person of record for the Member without meeting any of the clients and without taking any steps to learn the essential facts relative to each client or to ensure the suitability of the investments within each client's account, contrary to the Member's policies and procedures and MFDA Rules 2.2.1(a), 2.2.1(e)(i), 2.2.2, 2.1.1, 2.5.1, and 1.1.2; and
- between August 1, 2016 and December 31, 2016, executed NAAFs and KYC forms for 344 clients as the Approved Person of record for the Member, in which he falsely represented that he had met with the clients, contrary to MFDA Rule 2.1.1.
The settlement hearing will take place on November 23, 2018, commencing at 10:00 a.m. (Eastern), or as soon thereafter as the matter can be held, in the hearing room at the offices of the MFDA, located at 121 King Street West, Suite 1000, Toronto, Ontario.
MFDA settlement hearings are typically held in the absence of the public pursuant to section 20.5 of MFDA By-law No. 1 and Rule 15.2(2) of the MFDA Rules of Procedure. If the Hearing Panel accepts the settlement agreement, then the proceeding will become open to the public and a copy of the decision of the Hearing Panel and the settlement agreement will be made available at www.mfda.ca.
A copy of the Notice of Settlement Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Settlement Hearing, the Respondent conducted business in Tecumseh, Ontario.
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 82,000 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, Managing Director, Litigation, 416-943-4619, [email protected]
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