TORONTO, ON, Nov. 27, 2020 /CNW/ – The Mutual Fund Dealers Association of Canada (“MFDA”) has commenced disciplinary proceedings in respect of Sean Preston Davidson (“Respondent”). In its Notice of Hearing dated November 11, 2020 (“Notice of Hearing”), 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: In or about February 2014, the Respondent engaged in personal financial dealings with a client when he borrowed or otherwise accepted approximately $18,000 from one or more clients, which gave rise to a conflict or potential conflict of interest which he failed to disclose to the Member or otherwise address by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to the policies and procedures of the Member, and MFDA Rules 2.1.4, 2.1.1, 2.5.1 and 1.1.2.
Allegation #2: Between 2014 and 2017, the Respondent submitted three annual compliance questionnaires to the Member that contained false or misleading responses, thereby interfering with the ability of the Member to supervise the Respondent’s activities, engaging in conduct detrimental to the public interest, and failing to observe high standards of ethics and conduct in the transaction of business, contrary to MFDA Rule 2.1.1.
Allegation #3: Between January 2015 and January 2017, the Respondent failed to disclose to the Member that he had filed a consumer proposal in January 2015, contrary to the Member’s policies and procedures, and MFDA Rules 2.1.1, 1.2.2(b) (now 1.4(b)), 2.5.1 and 1.1.2, and s. 4.1(g) 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 January 12, 2021 at 10:00 a.m. (Eastern), or as soon thereafter as the appearance can be held, to schedule a date for the commencement of the hearing on the merits and to address any other procedural matters. The appearance will be open to the public, except as may be required for the protection of confidential matters. Members of the public who would like to listen to the teleconference should contact email@example.com to obtain particulars.
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
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