The Mutual Fund Dealers Association of Canada (MFDA) announced May 6 that B.C. mutual fund dealer Rodney Warren has been fined $100,000 for breaking MFDA rules.
He also has to pay $10,000 in costs and will be suspended for 90 days, starting May 9. After the suspension is over, he will be under “strict supervision” for 12 months and he will have a permanent ban on leveraging clients.
Warren had been a mutual fund sales person for Aegon Dealer Services Inc.
He admitted that, between August 2006 and January 2013, he failed to ensure that his leveraged investment recommendations were suitable for specific clients.
He did not pay regard to documents that outlined his clients’ risk tolerance as well as things such as their age, employment status and ability to withstand investment losses.
A MFDA hearing panel also found that, between May 22, 2012 and September 17, 2012, Warren failed to report a complaint to his employer and he attempted to negotiate a settlement with two clients without his employer’s knowledge or approval.
