MFDA issues Notice of Settlement Hearing regarding Domenic Fanelli

TORONTO, Sept. 24 /CNW/ - The MFDA today announced that it has issued a Notice of Settlement Hearing 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 Domenic Fanelli and involves matters for which the Respondent may be disciplined by a Hearing Panel pursuant to MFDA By-laws. The subject matter of the proposed settlement agreement concerns allegations that:

(a)     Between July 2002 and September 2003, the Respondent was involved with outside business activity that was not disclosed to or approved by the Respondent's Member, contrary to MFDA Rule 1.2.1(d)(iii);

(b)     Between February 2003 and September 2003, the Respondent recommended and facilitated the investment of funds in a publicly traded company unknown to and unapproved by the Respondent's Member, outside the Member and thereby engaged in securities related business contrary to the terms of his registration as a mutual fund salesperson under the Securities Act (Ontario), R.S.O. 1990, c. S.5, as am. and MFDA Rule 2.1.1; and

(c)     Commencing on or about September 13, 2006, by failing to provide MFDA Staff with copies of bank statements that were requested during the course of MFDA Staff's investigation of his conduct, the Respondent breached s. 22.1 of MFDA By-law No. 1.

The settlement hearing is scheduled to commence at 10:00 a.m. (Eastern) on December 3, 2010 in the hearing room located at the offices of the MFDA at 121 King Street West, Suite 1000, Toronto, Ontario and will be open to the public, except as may be required for the protection of confidential matters.

As previously announced, the Hearing on the Merits in respect of Michele Torchia will take place on December 3, 2010, immediately following the settlement hearing in respect of Domenic Fanelli.

Copies of the Notice of Settlement Hearing and Notice of Hearing are 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]