MFDA announces disciplinary proceeding in respect of Clinton Wayne

May 28, 2015, 17:05 ET from Mutual Fund Dealers Association of Canada

TORONTO, May 28, 2015 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") has commenced disciplinary proceedings in respect of Clinton Wayne (the "Respondent"). In its Notice of Hearing dated May 20, 2015, Staff of the MFDA alleges that the Respondent engaged in the following conduct contrary to the By-laws, Rules and/or Policies of the MFDA:

Allegation #1: Between November 2011 and April 2014, the Respondent had and continued in another gainful occupation that was not disclosed to or approved by the Member by:

a)    

acting as an officer and director of a real estate investment development corporation;

b)     

soliciting and arranging for clients and other individuals to invest in, or loan monies to, the real estate development corporation;

c)    

personally borrowing monies from clients which the Respondent used to invest in the real estate development corporation; and

d)    

receiving referral fees and other payments in respect of the monies invested in, or loaned to, the real estate development corporation by the clients and other individuals;

contrary to MFDA Rules 1.2.1(c) (formerly, MFDA Rule 1.2.1(d)), 2.1.4, 2.4.2, 2.1.1, and sections 13.7 and 13.8 of National Instrument 31-103.

Allegation #2: Between November 2011 and April 2014, the Respondent engaged in personal financial dealings with clients by personally borrowing monies from clients and failing to repay the clients, thereby giving rise to a conflict or potential conflict of interest between the Respondent and the clients, which 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.

Allegation #3: Between June 2012 and April 2014, the Respondent issued advertisements or sales communications, which had not been reviewed and approved by the Member, contrary to MFDA Rule 2.7.3.

Allegation #4:  Commencing March 4, 2013, the Respondent failed to comply with his reporting obligations to the Member by failing to report that he had been named a defendant in a civil claim related to the real estate investment development corporation, contrary to MFDA Rule 1.2.2(b), and subsections 4.1(b)(i) and (iv) of MFDA Policy No. 6.

The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on July 15, 2015 at 10:00 a.m. (Eastern), or as soon thereafter as the appearance can be held, in order to schedule a date for the commencement of the hearing on the merits and to address any other procedural matters. The first appearance will be open to the public, except as may be required for the protection of confidential matters.

A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Hearing, the Respondent conducted business in the Toronto, 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 104 Members and their approximately 80,000 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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