MFDA Hearing Panel approves settlement agreement with Robert Johnston
SOURCE Mutual Fund Dealers Association of Canada
TORONTO, Nov. 6, 2019 /CNW/ - A settlement hearing in the matter of Robert Douglas Johnston ("Respondent") was held on November 5, 2019 in Winnipeg, Manitoba before a three-member Hearing Panel of the Prairie Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA").
The Hearing Panel approved the settlement agreement dated June 27, 2019 ("Settlement Agreement") between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were imposed on the Respondent:
- a suspension from conducting securities related business in any capacity while in the employ or associated with any Member of the MFDA for a period of six months;
- a fine in the amount of $2,500;
- costs in the amount of $2,500; and
- shall in the future comply with MFDA Rules 1.1.2, 2.1.1 and 2.5.1.
In the Settlement Agreement, the Respondent admitted that:
a) between August 2014 and April 2015, he obtained, possessed, and used to process transactions, seven pre-signed account forms in respect of four clients, contrary to MFDA Rule 2.1.1;
b) between October 2012 and February 2016, he altered and used to process transactions, 14 client forms in respect of 12 clients, by altering information on the account forms without having the clients initial the alterations, contrary to MFDA Rule 2.1.1; and
c) between September 2010 and March 2016, he:
i. directed his assistant, for whom he was responsible, to falsely indicate that she had witnessed client signatures on two Limited Trade Authorization forms; and
ii. submitted one client Limit Trading Authorization form to the Member for processing that did not meet the Member's signature verification requirements;
thereby failing to comply with the Member's policies and procedures, contrary to MFDA Rules 2.5.1, 1.1.2, and 2.1.1.
A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, the Respondent conducted business in the Winnipeg, Manitoba 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.
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