MFDA announces disciplinary proceeding in respect of Gerald Daniel Rumball
TORONTO, July 29, 2015 The Mutual Fund Dealers Association of Canada ("MFDA") has commenced disciplinary proceedings in respect of Gerald Daniel Rumball (the "Respondent"). In its Notice of Hearing dated July 23, 2015, 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 October 2003 and May 2013, the Respondent failed to use due diligence to ensure that the orders that he accepted and the investment recommendations that he made to approximately 12 clients to enter into investment agreements with W.H. Stuart Mutuals Ltd. ("W.H. Stuart" or the "Member") or its principals or affiliated companies (the "Note Program") were suitable for the clients and within the bounds of good business practice, contrary to MFDA Rules 2.2.1 and 2.1.1.
Allegation #2: Between October 2003 and May 2013, the Respondent:
|
(a) |
failed to conduct adequate due diligence to determine and understand the nature of the investment and the extent of the risks associated with investments in the Note Program; and |
|
(b) |
misrepresented or failed to adequately explain to clients the risks, benefits, material assumptions and features of investments in the Note Program; and |
thereby failed to know the product and present the recommendations to invest in the Note Program in a fair and balanced manner, contrary to MFDA Rules 2.2.1 and 2.1.1.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on September 21st, at 9:30 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.
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 Hagersville, 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 103 Members and their over 80,000 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
For further information: Charles Toth, Director, Litigation, 416-943-4619, ctoth@mfda.ca
