MFDA announces settlement hearing to take place in respect of Richard Rhodes

TORONTO, July 16, 2019 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Richard Charles Rhodes ("Respondent") by Notice of Hearing dated June 22, 2018.

As the result of a settlement agreement entered into between Staff of the MFDA and the Respondent, the settlement hearing will take place on July 18, 2019, commencing at 10:00 a.m. (Mountain), or as soon thereafter as the matter can be heard, in the hearing room at the Renaissance Edmonton Airport Hotel, 4236 36^th Street East, Edmonton International Airport, Edmonton, Alberta.

The subject matter of the proposed settlement agreement concerns matters for which the Respondent may be disciplined pursuant to ss. 20 and 24.1.1 of By-law No. 1 of the MFDA. In particular, the settlement agreement concerns allegations that the Respondent:

a) in October 2016, processed two redemptions for one client where he determined the timing of the redemptions, thereby engaging in authorized discretionary trading, contrary to MFDA Rules 2.3.1 and 2.1.1;

b) between January 2011 and October 2016, obtained, possessed, and used to process transactions, seven pre-signed account forms in respect of five clients, contrary to MFDA Rule 2.1.1; and

c) in March 2013, altered and used to process transactions, four client account forms in relation to one client, by altering the client account forms without having the client initial the alterations, contrary to MFDA Rule 2.1.1.

MFDA settlement hearings are typically held in the absence of the public pursuant to section 20.5 of MFDA By-law No. 1 and Rule 15.2(2) of the MFDA Rules of Procedure. If the Hearing Panel accepts the settlement agreement, then the proceeding will become open to the public and a copy of the decision of the Hearing Panel and the settlement agreement will be made available at www.mfda.ca.

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 carried on business in the Peace River, Alberta 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