TORONTO , July 18, 2019 /CNW/ - A settlement hearing in the matter of Richard Charles Rhodes ("Respondent") was held today in Edmonton, Alberta before a three-member Hearing Panel of the Prairie Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA").
The Hearing Panel approved the settlement agreement dated July 15, 2019 ("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 $6,500 ("Fine");
- costs in the amount of $2,500 ("Costs");
- the Fine and Costs shall be payable as follows:
- shall in the future comply with MFDA Rules 2.1.1 and 2.3.1.
In the Settlement Agreement, the Respondent admitted that:
in October 2016, he processed two redemptions for one client where he determined the timing of the redemptions, thereby engaging in authorized discretionary trading, contrary to MFDA Rules 2.3.1 and 2.1.1;
between January 2011 and October 2016, he obtained, possessed, and used to process transactions, seven pre-signed account forms in respect of five clients, contrary to MFDA Rule 2.1.1; and
in March 2013, he altered and used to process transactions, four client account forms in relation to one client, by altering the client account forms without having the client initial the alterations, contrary to MFDA Rule 2.1.1.
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 in the Peace River, Alberta area.
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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