TORONTO, June 12, 2013 /CNW/ - The MFDA today announced that it has commenced disciplinary proceedings in respect of Jeremy R. Stones (the "Respondent"). MFDA staff alleges in its Notice of Hearing that the Respondent engaged in the following conduct contrary the By-laws, Rules or Policies of the MFDA:
|Allegation #1: Between about July 2010 and April 2012, the Respondent engaged in conduct unbecoming an Approved Person when he:|
|(a)||without the knowledge or approval of client CS, his former spouse, opened a registered educational savings plan ("RESP") account for the benefit of their two children in his name alone instead of as a joint account with client CS, contrary to his obligations as an Approved Person to client CS and to the terms of a Separation Agreement between the Respondent and client CS; and|
|(b)||without the knowledge or approval of client CS, subsequently withdrew a $3,500 contribution, which he had received from client CS and deposited in the RESP account, to pay personal expenses; contrary to MFDA Rules 2.1.1 and 2.1.4.|
|Allegation #2: In August 2011, the Respondent engaged in conduct unbecoming an Approved Person by providing information on a form filed with the Ontario Securities Commission which he knew to be false at the time he provided it, contrary to MFDA Rule 2.1.1.|
The first appearance in this matter will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on August 20, 2013 at 10:00 a.m. (Eastern) in the MFDA hearing room located at 121 King Street West, Suite 1000, Toronto, Ontario. The purpose of the first appearance is to set a date for the hearing of this matter on its merits, and to address any other procedural matters, and will be open to the public, except as may be required for the protection of confidential matters.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 116 Members and their approximately 80,000 Approved Persons with a mandate to protect investors and the public interest.
SOURCE Mutual Fund Dealers Association of Canada