CIRO issues Reasons for Decision in the matter of Edward Dudding

CALGARY, AB, Dec. 8, 2023 /CNW/ - Following a disciplinary hearing held on December 1-2, 2021, and a penalty hearing on December 17, 2021, a hearing panel of the Canadian Investment Regulatory Organization issued their Reasons for Decision.

The hearing panel's decision dated November 9, 2023, is available at:

(Re) Dudding, Guy, 2023 CIRO 27

Specifically, the hearing panel found that the respondent committed the following violations:

a)  Between June 2015 and May 2019, the Respondent misappropriated or otherwise failed to account for client monies, contrary to MFDA Rules 2.1.1, 2.5.1 and 1.1.2.

b)  Between November 2016 and February 2017, the Respondent borrowed monies from a client, thereby engaging in personal financial dealings with a client which gave rise to a conflict or potential conflict of interest that 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.

c)  On or about May 9, 2017, the Respondent provided a falsified account statement to a client, contrary to MFDA Rule 2.1.1.

d)  Between August 2015 and March 2020, the Respondent made false or misleading statements:

a)  to the Member in response to its supervisory inquiries; and
b)  to the Member or MFDA Staff during the course of investigations into his conduct;

contrary to MFDA Rule 2.1.1.

e)  Commencing in March 2020, the Respondent failed to cooperate with an investigation by MFDA Staff into his conduct, contrary to section 22.1 of MFDA By-Law No. 1.

The hearing panel imposed the following sanctions on Guy Dudding:

a)  a permanent prohibition from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member; and
b)  a fine of $990,600.

Guy Dudding is also required to pay costs in the amount of $20,000.

The alleged violations occurred while Guy Dudding was a Registered Dealing Representative with Investors Group Financial Services Inc. in Lloydminster, Alberta. Guy Dudding is no longer a registrant with a CIRO-regulated firm.

All information about disciplinary proceedings relating to current and former member firms and individual registrants under the Investment Dealer and Partially Consolidated Rules (for investment dealers), the Mutual Fund Dealer Rules (for mutual fund dealers) and the Universal Market Integrity Rules (UMIR) is available on CIRO's website.

Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by CIRO-regulated investment firms is available free of charge through the AdvisorReport service. Information on how to make investment dealer, advisor or marketplace-related complaints is available by calling 1-877-442-4322.

CIRO investigates possible misconduct by its member firms and individual registrants. It can bring disciplinary proceedings which may result in sanctions including fines, suspensions, permanent bars, expulsion from membership, or termination of rights and privileges for individuals and firms.

The Canadian Investment Regulatory Organization (CIRO) is the national self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada's debt and equity marketplaces. CIRO is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians' trust in financial regulation and the people managing their investments. For more information, visit www.ciro.ca.

SOURCE Canadian Investment Regulatory Organization (CIRO)