MFDA Hearing Panel issues Reasons for Decision in the matter of Stephen Pilkey
TORONTO, Dec. 11, 2017 /CNW/ - A Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") has issued its Reasons for Decision in connection with a settlement hearing held in Toronto, Ontario on October 26, 2017 in the matter of Stephen Pilkey ("Respondent").
In its Reasons for Decision dated December 8, 2017, the Hearing Panel confirmed the sanctions imposed on the Respondent. In particular, the Respondent:
- has paid a fine in the amount of $13,500;
- has paid costs in the amount of $2,500; and
- shall in the future comply with MFDA Rules 2.1.4, 2.5.1, 1.1.2 and 2.1.1.
In the Settlement Agreement dated April 24, 2017, the Respondent admitted that:
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a) |
between about April 2013 and July 2015 he opened and maintained a bank account in his corporation's name in trust for a client, and with the client's authorization accepted payments from the client's employer into the bank account which he paid to third parties on behalf of the client or invested in the client's mutual fund account with the Member, thereby engaging in conduct giving rise to a conflict or potential conflict of interest that he failed to 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 December 2011 and November 2014, he obtained, possessed and, in some instances, used to process transactions, 15 pre-signed account forms in respect of eight (8) clients, contrary to MFDA Rule 2.1.1; and |
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c) |
between July 25, 2007 and June 24, 2015, he falsified two (2) account forms in respect of two (2) clients by altering information on the forms without having the clients initial the alterations, contrary to MFDA Rule 2.1.1. |
Copies of the Reasons for Decision and the Settlement Agreement are available on the MFDA website at www.mfda.ca. During the period described in the Reasons for Decision, the Respondent carried on business in the Sarnia, 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 Members and their approximately 83,000 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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