TORONTO , Jan. 31, 2020 /CNW/ - A settlement hearing in the matter of Nadine Wighton ("Respondent") was held on January 30, 2020 in Toronto, Ontario before a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA").
The Hearing Panel approved the settlement agreement dated January 27, 2020 ("Settlement Agreement") between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were imposed on the Respondent:
- a fine in the amount of $20,000 , payable on or before February 6, 2020 ;
- costs in the amount of $5,000 , payable on or before February 6, 2020 ; and
- shall in the future comply with MFDA Rules 2.2.1, 2.5.1, 2.10, 1.1.2, and 2.1.1.
In the Settlement Agreement, the Respondent admitted that:
between December 24, 2009 and February 12, 2013, she failed to conduct adequate due diligence to learn, or accurately record on account documents, Know-Your-Client information for client PS, contrary to MFDA Rules 2.2.1 and 2.1.1;
between December 24, 2009 and February 12, 2013, she arranged for client PS's account statements to be delivered to a third party without taking adequate steps to determine whether client PS had authorized and was aware of the address change, thereby failing to ensure that the confidential information relating to client PS was maintained in confidence, contrary to the policies and procedures of the Member and MFDA Rule 2.1.1, 2.5.1, 2.10, and 1.1.2; and
on January 26, 2011, she accepted and acted upon trade instructions regarding two deposits and purchases in client PS's investment account that she received from a third party who did not possess trading or signing authority over the investment accounts of client PS, and submitted the trades for processing without obtaining authorization from client PS, thereby engaging in unauthorized trading, contrary to the policies and procedures of the Member and MFDA Rules 2.1.1, 2.5.1, 2.10, and 1.1.2.
A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, the Respondent carried on business from a branch located in Hamilton, 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 81,000 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
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