MFDA Hearing Panel issues Reasons for Decision (Misconduct) in the matter of John Elwood
In its Reasons for Decision, the Hearing Panel outlined its findings of misconduct made against the Respondent.
TORONTO, Feb. 25, 2020 /CNW/ - A Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") has issued its Reasons for Decision (Misconduct) dated February 20, 2020 ("Reasons for Decision") in connection with a disciplinary hearing held in Toronto, Ontario on October 24-25, 2019 and December 4, 2019 in the matter of John David Elwood ("Respondent").
In its Reasons for Decision, the Hearing Panel outlined its findings of misconduct made against the Respondent. In particular:
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a) |
between September 2012 and April 2017, the Respondent borrowed $16,000 from a client thereby engaging in personal financial dealings with the client that gave rise to an actual or potential conflict of interest that the Respondent failed to disclose to the Member or to the client in writing and failed to otherwise address by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to the Member's policies and procedures and MFDA Rules 2.1.4, 2.5.1, 1.1.2, and 2.1.1. |
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b) |
between September 2013 and January 2017, the Respondent misled the Member by providing false responses to Member questionnaires, thereby interfering with the Member's ability to supervise the Respondent, contrary to MFDA Rules 2.1.1, 2.5.1 and 1.1.2. |
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c) |
between about February 2016 and April 2017, the Respondent failed to report that he had been named a defendant in a civil claim related to borrowing money from a client, contrary to MFDA Rules 1.4(b) and 2.1.1 and section 4 of MFDA Policy No. 6. |
Submissions with respect to sanctions will take place before the Hearing Panel on a date to be determined and announced accordingly.
A copy of the Reasons for Decision (Misconduct) is available on the MFDA website at www.mfda.ca. During the period described in the Reasons for Decision, the Respondent conducted business from a branch office located in the Toronto area.
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.
SOURCE Mutual Fund Dealers Association of Canada
