BCSC panel upholds MFDA decision that former mutual fund salesperson breached rules
VANCOUVER, Sept. 10, 2013 /CNW/ - A British Columbia Securities Commission panel has upheld decisions of a Mutual Fund Dealers Association (MFDA) hearing panel that former mutual fund salesperson Marlene Legare broke MFDA conflict of interest rules and failed to cooperate with the MFDA's investigation.
On October 29, 2010, an MFDA panel found that Legare, a registered mutual fund salesperson in B.C. from January 1991 until July 2006, breached conflict of interest rules by borrowing $49,650 from a client, and failed to cooperate with MFDA staff's subsequent investigation. The alleged misconduct took place between November 2005 and June 2006.
The MFDA panel issued its penalty decision on July 18, 2011. The panel permanently banned Legare from selling mutual funds and made orders against her, including fines totalling $75,000 and costs of $10,000.
Legare asked the commission to review the MFDA decisions. Once Legare filed her material with the commission, the commission held the review on June 13 of this year.
In a decision dated September 4, 2013, the commission panel confirmed the MFDA panel's decisions and concluded by saying:
"This case involved relatively simple facts but was protracted by multiple applications and delays instigated by Legare. The hearing panel demonstrated considerable patience in dealing with Legare, and exercised its powers judiciously and made extraordinary efforts to accommodate her.
"As documented in the transcripts, the hearing panel issued carefully considered rulings after reviewing Legare's applications. Its written findings and penalty decision were similarly measured and comprehensive. In our opinion, the MFDA's findings were reasonable."
The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the decision on our website www.bcsc.bc.ca by typing in the search box, Marlene Legare or 2013 BCSECCOM 362. Information regarding disciplinary proceedings can be found in the Enforcement section of the BCSC website.
Please visit the Canadian Securities Administrators' Disciplined Persons List for information relating to persons disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA).
If you have questions, contact Richard Gilhooley, media relations, 604-899-6713. For public inquiries, call 604 899 6854 or 1 800 373 6393 (toll free).
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SOURCE British Columbia Securities Commission