THUNDER BAY -- The Mutual Fund Dealers Association of Canada (MFDA) has imposed sanctions on a member working in Thunder Bay for breaking some of its rules.
It has fined Robert Stephen Mitchell $30,000 and suspended him from conducting securities-related business in any capacity for one month, ending June 30.
The sanctions resulted from a settlement hearing conducted in Toronto on May 31 before a three-member panel of the MFDA.
A news release posted on the association's website states that Mitchell admitted to engaging in actions contrary to MFDA rules between 2005 and 2015 while he was conducting business in the Thunder Bay area:
- between September 2014 and March 2015, he processed approximately 28 trades in respect of ten (10) clients where he determined the specific elements of the trades, including the mutual fund that was traded, the amount of the trade and/or the timing of the trade, thereby engaging in discretionary trading, contrary to MFDA Rules 2.3.1 and 2.1.1;
- between March 2005 and January 2015, he directly reimbursed four (4) clients for deferred sales charge fees and short term trading fees incurred by the clients, thereby engaging in personal financial dealings with the clients which gave rise to a conflict or potential conflict of interest that the Respondent failed to address by the exercise of responsible business judgment influenced only by the best interests of the clients, contrary to MFDA Rules 2.1.4 and 2.1.1; and
- between about March 2010 and August 2014, he obtained, possessed and, in some instances, used to process transactions, 25 pre-signed account forms in respect of 12 clients, contrary to MFDA Rule 2.1.1.
The Mutual Fund Dealers Association is the self-regulatory organization for dealers which regulates the operations, standards of practice and business conduct of its members "with a mandate to protect investors and the public interest."
Information about the MFDA's complaint and enforcement processes is available on its website.
