Legal Issues

On Oct. 11, 2017, an MFDA hearing panel permanently banned and fined a previously registered representative, Walter John Dixon.

The sanctions result from Dixon’s failure to respond to numerous communication attempts by the MFDA about a client complaint. Over 11 months, the MFDA attempted to contact Dixon by regular mail, registered mail, process servers, email and phone.

The client complained she had been charged excessive service fees and wasn’t informed that Dixon’s firm, Wealthcare Financial Group, earned further commissions and fees on mutual fund trades in her accounts.

Read: What do you do to make fees more transparent?

Dixon’s failure to respond is “serious misconduct” because it impedes fact gathering, said the hearing panel in its reasons for decision, dated Nov. 13, 2017.

“Further, the failure to provide information requested in an investigation undermines the integrity of the industry’s self-regulatory system and the effectiveness of its operations, including the MFDA’s mandate to protect the public,” said the hearing panel.

In addition to the ban, Dixon has been fined $50,000 and must pay costs of $7,500.

Read the full reasons for decision.

Also read:

MFDA fines firm $200,000 for supervisory failures

MFDA plans sweep of advisors, reveals more on CE plans

An algorithm may decide your next compliance review

Originally published on Advisor.ca
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