MFDA issues Notice of Settlement Hearing in respect of Kenneth Showalter
MFDA issues Notice of Settlement Hearing in respect of Kenneth Showalter
Canada NewsWire
TORONTO, Feb. 15, 2019
TORONTO, Feb. 15, 2019 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") announced that it has issued a Notice of Settlement Hearing dated January 31, 2019 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 Kenneth Richard Showalter ("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:
a) | failed to report a client complaint to the Member and paid compensation to the client to settle the complaint without prior written authorization from the Member, contrary to section 4.1(a) of MFDA Policy No. 6, sections 9-1, 9-2 and 10 of MFDA Policy No. 3, MFDA Rules 2.1.1, 2.1.4, 2.5.1 and 1.1.2 and the policies and procedures of the Member; and |
b) | engaged in discretionary trading by processing trades in the investment accounts of a client without first obtaining instructions from the client with respect to all elements of the trades, contrary to former MFDA Rules 2.3.1(a) [now MFDA Rule 2.3.1(b)]1, 2.1.1, 2.1.0 and 1.1.2 and the policies and procedures of the Member. |
The settlement hearing will take place on March 7, 2019, 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, 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 the Courtice, Ontario and Ottawa, Ontario areas.
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.
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1On January 19, 2017, MFDA Rule 2.3.1 was amended. The prohibition on discretionary trading was moved from MFDA Rule 2.3.1(a) to MFDA Rule 2.3.1(b).
SOURCE Mutual Fund Dealers Association of Canada
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