TORONTO , Sept. 23, 2019 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of James Edward Drysdale ("Respondent") by Notice of Hearing dated October 5, 2018 .
A disciplinary hearing in this matter was held on today in Toronto, Ontario before a three-member Hearing Panel of the MFDA's Central Regional Council. Prior to the hearing, the parties filed an Agreed Statement of Facts dated September 20, 2019 ("Agreed Statement of Facts") in which the Respondent admitted to facts constituting contraventions of MFDA By-laws, Rules or Policies, for which he could be penalized by a Hearing Panel pursuant to section 24.1 of MFDA By-law No. 1.
In particular, the Respondent admitted that:
in February 2015 and November 2015, he submitted for processing at least 17 transactions in the accounts of 6 clients without maintaining adequate notes of instructions received from the clients, contrary to MFDA Rules 1.1.2 (as MFDA Rule 1.1.2 relates to MFDA Rule 2.5) and 2.1.1; and
between March 10, 2006 and May 19, 2016, he maintained at least 62 blank pre-signed and/or altered account forms in respect of 47 clients, thereby failing to observe high standards of ethics and conduct in the transaction of business or engaging in conduct unbecoming an Approved Person, contrary to MFDA Rule 2.1.1
Following submissions from the parties, the Hearing Panel imposed the following sanctions on the Respondent and advised that it will issue written reasons in due course:
- a prohibition from acting as a mutual fund salesperson for a period of two years;
- a fine in the amount of $7,500 ; and
- costs in the amount of $2,500 .
Copies of the Notice of Hearing and the Agreed Statement of Facts are available on the MFDA website at www.mfda.ca. During the period described in the Agreed Statement of Facts, the Respondent carried on business in the Windsor, Ontario 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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