TORONTO, Sept. 9, 2022 /CNW/ – The Mutual Fund Dealers Association of Canada (the “MFDA”) has commenced disciplinary proceedings in respect of Ann Marie Reid (the “Respondent”). In its Notice of Hearing dated August 22, 2022 (the “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: Between January 2016 and September 2017, the Respondent accepted a power of attorney for property from client MW, contrary to the Member’s policies and procedures and MFDA Rules 2.3.11, 2.1.1, and 1.1.2 (as it relates to MFDA Rule 2.5.1).
Allegation #2: Between April 2016 and September 2017, the Respondent accepted an appointment to act as executor and trustee of client MW’s estate, and between March 2018 and July 2020 accepted an appointment to act as co-executor and co-trustee of client MW’s estate, contrary to the Member’s policies and procedures and MFDA Rules 2.3.1, 2.1.1, and 1.1.2 (as it relates to MFDA Rule 2.5.1).
Allegation #3: The Respondent 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, conflicts or potential conflicts of interest that arose between her and client MW when she became aware:
- between January 2016 and September 2017 that she was or would be appointed as a power of attorney for property of client MW;
- between January 2016 and September 2017 that she was or would be appointed as an executor and trustee of client MW’s estate;
- between March 2018 and July 2020 that she was or would be appointed as a co-executor and co-trustee of client MW’s estate; and
- between January 2016 and July 2020 that she was or would be designated as a beneficiary of client MW’s estate,
contrary to the Member’s policies and procedures and MFDA Rules 2.1.42, 2.1.1, and 1.1.2 (as it relates to MFDA Rule 2.5.1).
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA’s Central Regional Council on October 12, 2022 at 9:00 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 issues. 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 protected] to obtain particulars.
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 Mississauga and Toronto, Ontario areas.
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 76,695 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.
1 On January 19, 2017, amendments to MFDA Rule 2.3.1 came into effect. When MFDA Rule 2.3.1 is referred to in this Notice of Hearing, Staff alleges that the Respondent’s conduct contravened both versions of the Rule (i.e.; the version of Rule 2.3.1 that was in effect between December 11, 2008 and January 19, 2017 and the version of Rule 2.3.1 that has been in effect since January 19, 2017).
2 On June 30, 2021, amendments to MFDA Rule 2.1.4 came into effect. As the conduct addressed in this proceeding pre-dated the amendment to the Rule, Staff is relying upon the version of MFDA Rule 2.1.4 that was in effect between February 27, 2006 and June 30, 2021 when MFDA Rule 2.1.4 is referred to in this Notice of Hearing.
SOURCE Mutual Fund Dealers Association of Canada