MFDA issues Notice of Settlement Hearing in respect of Edward Clairmont

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 Edward Paul Clairmont ("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:

1. between August 1, 2016 and December 31, 2016, arranged for 344 clients to execute new account application forms and Know-Your-Client forms to transfer the clients to a new Member, when he was not registered with the new Member, thereby engaging in registrable activity and securities related business outside the scope of his registration, contrary to MFDA Rules 1.1.1 and 2.1.1;
2. between August 1, 2016 and December 31, 2016, had 344 clients execute 829 undated new account application forms, Know-Your-Client forms, and transfer authorizations, which were later signed by another Approved Person registered with the new Member to effect the transfers, contrary to MFDA Rule 2.1.1;
3. between 2012 and 2016, obtained, maintained, and/or used at least:
1. 46 pre-signed account forms;
2. 16 accounts forms which were altered after the client had signed the forms; and
3. one account form on which the client's signature had been copied and pasted from another form, contrary to the Member's policies and procedures and MFDA Rules 2.1.1 and 2.5.1 and 1.1.2;
4. from 2012 to 2016:
1. falsely certified each year on the Member's annual registration renewals that he did not have in his possession or control any pre-signed forms; and
2. failed to disclose to his Member on the 2016 Annual Audit Questionnaire his arrangement to share office space with another Approved Person, contrary to MFDA Rules 2.1.1 and 2.5.1 and 1.1.2; and
5. in or around November 2016, engaged in 129 instances of discretionary trading, contrary to his Member's policies and procedures and MFDA Rules 2.3.1(b), 2.1.1, 2.5.1, and 1.1.2.

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]

Related Links

http://www.mfda.ca